Small business optimism ticked down in November
On Tuesday, the National Federation of Independent Business released its Small Business Optimism Index, which inched down in November. It’s now been in negative territory — compared to the historical average — since the beginning of 2022.
NFIB’s head of research, Holly Wade, sums up what’s bumming out small-business owners in four words: “Inflation and labor shortage.”
But here’s the thing: Inflation has been falling, and labor supply has been improving. Still, “they don’t see particularly anything to suggest those headwinds are easing up in a significant way,” said Wade.
As stressed as they are though, Wade said that small business owners aren’t super pessimistic about the future.
“Their sales expectations — that hasn’t deteriorated as you would expect if we were headed towards a recession,” she said.
The sector has been through a lot, said Frank Fiorille at payroll processor Paychex.
“These small businesses have been very resilient, hanging in there, and they’re doing a very good job of maneuvering,” he said.
Plus, Fiorille added that they’re finally getting a bit of relief on wages, which are now growing at the slowest pace in more than two years.
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