NFIB reports business optimism hits 12th consecutive month of below average lows.
The NFIB Small Business Optimism Index showed a decline by 2.1 points in December, putting the index at 89.8 – the 12th month of consecutive below average lows. The prior 49-year average was 98.
Expectations going into the next six months are that things will get worse at a net negative 51 percent.
Inflation remains the single most important business problem as 32 percent of owners have reported that it is their top operating concern.
“Overall, small business owners are not optimistic about 2023 as sales and business conditions are expected to deteriorate,” said NFIB Chief Economist Bill Dunkelberg. “Owners are managing several economic uncertainties and persistent inflation and they continue to make business and operational changes to compensate.”
Mississippi business owners are no exception to this data according to State Director Dawn McVea.
“Small business owners need predictability, and rising costs create uncertainty about how to manage and grow their businesses,” said McVea. “On top of that, owners are still struggling to fill vacancies despite offering higher wages, and that’s making it even harder for them to deliver the goods and provide the levels of service their customers expect.”
NFIB notes that 41 percent of owners reported job openings that were hard to fill, down three points from November but historically very high. The net percent of owners raising average selling prices decreased eight points to a net 43% (seasonally adjusted), also historically high.
The net percent of owners who expect real sales to be higher in the year ahead worsened two points from November to a net negative 10%.
Sarah Ulmer
