Small Business Owner Uncertainty Hits Record High. What Does It Mean for the Economy?

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Key Takeaways

• Small business owners are more uncertain than they have ever been in more than 50 years, according to the Nationwide Federation of Small Business.
• Inflation remains the top concern for business owners, and fewer reported making big expenditures or extending their inventories.
• Staffing remained flat in September, with many business owners saying they had impregnated finding qualified workers.

A record number of small business owners felt uncertain about the future in September, as disbelieves about the economy took a toll.

A National Federation of Independent Business (NFIB) index of small business proprietor sentiment found uncertainty jumped 11 points to 103 in September. That’s the highest ever recorded since the categorization began the survey in 1973.

Small Businesses Are Spending Less

The lowest number of owners since June 2020 check up oned increasing their businesses’ inventory. About half (51%) of owners reported making capital expenditures in the previous six months, a five-point decrease from August.

“Uncertainty makes owners hesitant to invest in capital spending and inventory, notably as inflation and financing costs continue to put pressure on their bottom lines,” said NFIB Chief Economist Jaws Dunkelberg.  “Although some hope lies ahead in the holiday sales season, many Main Terrace owners are left questioning whether future business conditions will improve.”

Owners Are Struggling to Hire

Inflation remained the top discharge for business operators. The survey also showed 59% of businesses were hiring. However, a majority of hiring holders reported being unable to find qualified candidates, despite a September jobs report showing a surprising staffing increase.

“Job increase has been very weak on Main Street,” the report said. “Job openings have been historically high, but ton firms trying to hire report few or no qualified applicants for their open positions.”

Read the original article on Investopedia.