Small businesses are optimistic about the future business environment
WASHINGTON, DC (August 13, 2024) – NFIB Research Center Executive Director Holly Wade joined Yahoo! Finance’s Brad Smith to discuss the state of the small business economy and optimism on Main Street.
Wade analyzed data from NFIB’s July SBET survey showing how changing economic conditions and easing headwinds are improving small business owners’ expectations for the future business environment.
Check out the interview with Wade here: https://finance.yahoo.com/video/small-business-optimism-rising-indicates-165049965.html
“The index increased by 2.2 points last month, which is a great sign that conditions are easing for small businesses across the country, particularly as the economic outlook improves. It’s up 18 points since June.” [This was] This is a great sign that the small business headwinds that we’ve been talking about for months are starting to ease. Future revenue expectations are improving, slightly fewer companies are planning to increase compensation, fewer companies are raising prices, and fewer companies are planning to increase prices. So while the inflation picture is still the most important issue for one in four small business owners, all of these headwinds have eased. This is a great sign for small business owners.
“We’ve seen an increase in the number of people who expect their sales to increase over the last month. Because they are competing with neighboring businesses, they have to adjust their prices to retain customers. We all know that consumers as well as businesses are feeling price fatigue. They haven’t been happy that over the past few years they’ve had to raise prices more frequently than before. So relieving these pressures will greatly reduce stress for small business owners, and we expect to see sales improve even further over the next three months.”
“The number of unfilled jobs remains at an all-time high and very high levels over the last few years. Job openings are still at a high level, so it’s a good sign that the small business employment sector is still doing well. In terms of capital investment, it’s been pretty subdued over the past few years…[Small business owners are] They may hesitate a little bit on whether to make a big expenditure and wait a few months to see if financing costs ease up a little bit and become more affordable.”