Small business owners’ pessimism on the rise

The NFIB Optimism index declined 0.1 points in May to 93.1, which is the fifth consecutive month below the 48-year index average of 98, according to the news release.

Among the key findings in the survey of small business owners nationwide:

  • 28% said inflation was their most important problem, down four points from April’s survey.
  • 51% reported job openings they could not fill.
  • 46% raised compensation.
  • 72% raised average selling prices.
  • 39% said supply chain disruptions had a significant impact.

Nationally, 80% of wholesale businesses raised prices, as did 79% of manufacturers, 78% of retail trade businesses and 77% of construction businesses, the survey found.

In a recent NFIB Ohio survey nearly half of business owners reported inflation as their chief concern and more than one-third said lack of job applicants was the biggest problem.

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“Our members here in Ohio are filled with uncertainty as surging inflation, especially in fuel costs, rising labor costs, and supply chain issues that continue to linger,” said Chris Ferruso, legislative director for NFIB in Ohio.

Chris Ferruso, legislative director for the National Federation of Independent Business-Ohio

Chris Ferruso, legislative director for the National Federation of Independent Business-Ohio

“In contending with larger competitors, it is more difficult for small businesses to raise their prices, which would price themselves out of the market. It is not hard to see why so many are hesitant to grow. There is just too much uncertainty, ”Ferruso said.

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