NICK GOSNELL
Hutch Post
HUTCHINSON, Kan. — The NFIB Small Business Optimism Index increased 0.9 of a point in July to 91.9, marking the 19th consecutive month below the 49-year average of 98.
"Optimism has certainly been missing for the last several months from our small business sector," said Dan Murray with NFIB-Kansas. "This is our almost 50th year of doing this survey. Certainly, there are some concerns among Main Street small business owners about where the economy is. Labor quality continues to be the top business concern for small businesses."
Forty-two percent of owners reported job openings that were hard to fill, unchanged from June but remaining historically very high.
"61 percent of owners reported hiring or trying to hire in July," Murray said. "That's up two points from June. Of those trying to hire or hiring, 92% of those owners reported few or no qualified applicants for the positions they are trying to fill."
Twenty-one percent of owners reported that inflation was their single most important problem in operating their business, down three points from June.
"I think one of the positives that we have continued to see, at least, is that consumer spending remains relatively high," Murray said. "Folks are out there spending money, in spite of increased inflation. Our concern is that inflation tends to be cooling, that consumer spending at the same time is going to slack off as we head into the fall."
Among owners reporting lower profits, 30% blamed weaker sales, 19% blamed the rise in the cost of materials, 18% cited labor costs, 9% cited lower prices, 5% cited usual seasonal change, and 4% cited higher taxes or regulatory costs.
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