Posted 1/9/2024, 11:30:00 AM
Small Business Outlook Gloomy as Inflation Overtakes Labor as Top Worry
- Small business optimism index rose slightly but remains very low compared to historical average, showing pessimism about economic prospects
- Inflation surpassed worker quality as biggest threat to small businesses, with 23% citing price increases as top problem
- Over one-third of small businesses raised prices to offset high inflation
- 20% said labor quality was top problem, amid low unemployment and rapid wage growth making hiring difficult
- Inflation concerns come right before new CPI data expected to show sticky inflation continuing above Fed 2% target