NICK GOSNELL
Hutch Post
HUTCHINSON, Kan. — Dan Murray with NFIB Kansas is not surprised by the fact that their Small Business Optimism Index fell in August.
"Our Small Business Index, which is over 50 years of data, it fell by two and a half points in August, which erases minor gains that we experienced in July," Murray said. "This represents the 32nd consecutive month below the 50-year average of 98. The Uncertainty Index rose to 92, its highest level since October of 2020. Inflation remains the top issue amongst small business owners. Twenty-four percent of owners reported it as their top small business operating issue down one point in July."
There is an issue on the horizon if Congress does not act to make the tax relief in the Tax Cuts and Jobs Act permanent.
"In the moment, high inflation, the inability to find workers continue to be a problem for small business owners," Murray said. "As they look out on the horizon, they will experience a massive tax hike in 2025 or the 2026 year, if we don't make permanent the small business deduction."
Inflation in costs of materials and labor is having to be passed on to small business customers, as well.
"When we looked at this most recent study, price hikes were the most frequent in the finance, retail, construction, and manufacturing sectors," Murray said. "Twenty-five percent of small business owners planned price hikes in August, so that is certainly top of the mind for particularly finance, retail, construction, and manufacturing."
Of the 62% of small business owners trying to hire in August, 90% reported few or no qualified applicants for the positions they were trying to fill.