WFC - Rising Prices Squeeze Small Businesses: Only 43% Expect Better Conditions In Next 6 Months | Benzinga
The future doesn't look bright for small businesses, according to the owners themselves.
A new National Federation of Independent Businesses (NFIB) survey of small business owners has placed inflation as the single most important problem in running their businesses.
In August, consumer prices rose to 3.7%, climbing for the first time in 2023 after 13 consecutive monthly drops. Inflation data for September will be made available on Thursday, Oct. 12.
While inflation was largely reduced since a June 2022 peak of 9.1%, rising prices continue to impact the balance sheets of small businesses across the country.
"Sales growth among small businesses have slowed and the bottom line is being squeezed, leaving owners few options beyond raising selling prices for financial relief," said Bill Dunkelberg, chief economist at the NFIB.
While trying to compensate for a rise in prices for energy, labor and goods, small businesses have raised their own prices, putting even more pressure on inflation.
That's leading small business owners to have a pessimistic outlook. Only 43% of small business owners expect better business conditions over the next six months. That's a drop of 6% since the previous reading from August.
There are 33.2 million small businesses in the United States, which account for roughly 44% of the ...