Despite the uncertainty of the economic environment, small companies in the country are rapidly increasing. Recently, NFIB Small Business OpMentism Index rose to 1.7 points in July, reaching 100.3.
NFIB’s chief economist, Bill Dunkelberg, said, “In July, optimism has risen slightly, as optimism has reported more positive expectations for business conditions and expansion opportunities.” The latest results have a significant impact on the business owner who finds expansion opportunities and the task they can face.
The report confirmed the main factors that contributed to the increase of optimism. In particular, business conditions are looking for many owners, and 13%of the total health of 13%is evaluated as 13%. 52%, on the other hand, reported that it was good with an increase of 3 points. However, 31%of the business health was fairly evaluated and 4%were poor.
Many small business owners tend to expand. I think 16 %of respondents have earned 5 points from June. This reflects the growing trust in the market situation. However, the uncertainty index increases 8 points at the same time, emphasizing the current unpredictable environment. Therefore, the condition seems to be favorable for growth, but the employer may need to prepare potential obstacles in the process.
The quality of labor continues to be the most important problem, and it has increased significantly from the previous month, citing 21%of the owner Guy as the most urgent problem. With the strengthening of the job market, the business owner challenges the charging position despite the 33%of the inconsistent job opening reports that are not adjusted according to the season. This figure has fallen since last month, but it still rises, indicating that recruitment remains an embarrassing challenge.
14%of the owners plan to create new jobs in the fourth quarter, suggesting that small companies are still devoted to growth. However, the struggle to find qualified applicants persists, and 84%of the people in the recruitment process reports that there is a lack of available talent. This emphasizes the importance of effectively searching the labor market.
Financial factors also played an important role in the NFIB survey. The job opening seems to be decreasing, but concerns about labor costs are somewhat destroyed and reduced to 9%. However, inflation is concerned about 11%of small business owners and faces the cost and pressure to adjust the price strategy. This report shows a 28%plan to raise the price. It is lower than this month, but it still reflects the continuous inflation pressure that many people are fighting.
Despite these tasks, capital spending increased. 22% of small business owners plan to invest in long -term resources for the next six months, but this remains less than 29% of historical average. Recently, 38%of those who spend have focused on new equipment, and others have invested in facilities and vehicles. This trend suggests that many people are preparing for future growth despite uncertainty.
On the financial front, the owners of small businesses reported slightly increased loans, and 4%cited funds and interest rates as the highest problems. This represents a shift with the previous moon, which emphasizes the need for business owners to adjust their financial strategy.
There are good news in terms of optimism and scalability, but it is important for small business owners to maintain their perception of continuous challenge, especially the quality of manpower and inflation pressure. As Dunkelberg pointed out, the next six months can provide more clarity by making a 20% small business deduction permanently as a small business owner observes the meaning of parliament and observing the finishing of trade policy.
Overall, the NFIB’s small business optimism index emphasizes the importance of pre -prevention plan as a small company explores these complex economic waters, reflecting cautious optimism among owners. To see more insights and data, the entire report is as follows. NFIB News.
Image through ENVATO
