(The Center Square) – After showing improvement, small business optimism fell again in December as expectations for better business conditions worsened, according to a new survey.
A month after the National Federation of Independent Business’ Small Business Optimism Index showed improvement, it significantly fell again in December and the number of owners who believe conditions will improve also fell.
“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.”
The index declined 2.1 points in December to 89.8, marking the 12th consecutive month below the 49-year average of 98. At the same time, business owners expecting better conditions over the next six months fell by eight points from November.
The survey showed inflation still is single most important business problem, according to 32% of business owners.
“Small business owners want predictability, and right now, they do not have it. Inflation continues to drive up prices across the board, and Main Street businesses are still unable to find enough people to fill the positions that are available,” NFIB State Executive Director Roger Geiger said.
The survey also said 41% of owners reported job openings were hard to fill, which is an improvement over November by three points.
As previously reported by The Center Square, the Small Business Optimism Index rose slightly in November to 91.
Also, a survey of the state’s small business owners released in late December from NFIB showed inflation and labor are expected to continue to be challenges in 2023. Overall, the survey showed 61% believe economic conditions will be worse or much worse six months from now, while only 36% believed they would improve.
