President Biden and Speaker Pelosi’s inflation crisis rampages on in Biden’s America. Inflation continues to have a strangle hold on the nation’s small businesses and families. Americans are feeling the pain by being forced to shoulder this Democrat-caused economic crisis. Reckless spending has sent the American economy toward a recession. This could have all been avoided if Democrats ditched their tax and spend agenda. Our primary job creators are facing roadblock after roadblock and all they need is for Washington to step out of the way.
The below July 2022 Small Business Snapshot features numbers and news updates to provide more insight into the current small business economy.
CONSUMER PRICE INDEX (INFLATION)
- The prices consumers paid for goods and services increased by 1.3 percent in June as compared to May, totaling a 9.1 percent increase when measured over the last 12 months.
PRODUCER PRICE INDEX
- Wholesale prices increased 1.1 percent in June and 11.3 percent year over year.
- At the end of May, businesses were unable to fill a near record 11.3 million jobs and a near record 4.3 million workers quit their jobs.
- 372,000 jobs were created in June, and the unemployment rate remained unchanged at 3.6 percent. 5.9 million Americans are unemployed.
LABOR FORCE PARTICIPATION RATE
- The labor force participation rate decreased to 62.2 percent in June.
UNEMPLOYMENT INSURANCE WEEKLY CLAIMS
- For the week ending July 9, 2022, the Department of Labor reported that initial unemployment claims were 244,000.
PERSONAL CONSUMPTION EXPENDITURES PRICE INDEX (CORE PCE which excludes energy and food)
- Core PCE registered a reading of 4.7 percent in May when measured year over year.
BUSINESS FORMATION STATISTICS
- Business formation applications totaled 410,348 in June marking a decrease of 2.5 percent over last month.
HIGH PROPENSITY BUSINESS FORMATION STATISTICS
- New businesses categorized as having an increased likelihood of having employees and a payroll, otherwise known as High Propensity Businesses, totaled 135,770 (a decrease of 1.1 percent) in June.
- Consumer sentiment registered 51.1 in July.
COMMERCIAL AND INDUSTRIAL LOAN DATA
- Through May, commercial and industrial loans totaled $2.597 trillion.
SBA LENDING DATA
- The SBA approved a total of $18.4 billion 7(a) Loans through July 8, 2022.
NEWS YOU CAN USE:
Job Creators Network: “Recession and Stagflation Have Arrived Due to the Biden Administration’s and Congressional Democrats’ Bad Policies” (HERE)
- “The Atlanta Federal Reserve recently projected that the economy contracted by 2.1% in the second quarter of this year, meaning the U.S. economy is in a recession.”
- “The nation is in a recession. With consumer sentiment at a 50-year low, this recession has long been clear for anyone who’s looking. Bidenflation means the nation is actually experiencing not only a recession but also stagflation.”
- “There are still fewer people employed today than before the pandemic. Yet even beyond the data, the on-the-ground experiences facing small businesses are clear: The economy is in a recession as the result of bad policies by the Biden Administration and Congressional Democrats.”
National Federation of Independent Business: “NFIB Jobs Report: Worker Shortages Remain a Top Problem for Small Business Owners” (HERE)
- “NFIB’s monthly jobs report shows half of small business owners (seasonally adjusted) reported job openings they could not fill in the current period, down one point from May’s 48-year record high.”
- “Small business owners’ plans to fill open positions remain elevated, with a seasonally adjusted net 19% planning to create new jobs in the next three months, even though down seven points from May.”
- “A net 48% of owners (seasonally adjusted) reported raising compensation, down one point from May but only two points below the 48-year record high set in January. A net 28% plan to raise compensation in the next three months, up three points from May. Hopefully this will attract new workers into the labor force.”
CNBC: Inflation Rose 9.1% in June, Even More Than Expected, as Consumer Pressures Intensify (HERE)
- “The consumer price index increased 9.1% from a year ago in June, above the 8.8% Dow Jones estimate.”
- “Excluding volatile food and energy prices, so-called core CPI increased 5.9%, compared with the 5.7% estimate. Core inflation peaked at 6.5% in March and has been nudging down since.”
- “The inflation reading could push the Federal Reserve into an even more aggressive position.”
Fox Business: “Wholesale Inflation Surges 11.3% in June, Accelerating More Than Expected” (HERE)
- “Wholesale prices accelerated again in June as inflation seeps throughout every part of the U.S. economy, squeezing businesses and American households in the form of higher prices for most necessities.”
- “Core inflation at the wholesale level, which excludes the more volatile measurements of food and energy, increased 0.3% for the month, following a 0.4% increase in April and May.”
- “Overall, prices for goods jumped 2.4% last month, the sixth consecutive rise and the biggest contributor to the headline inflation figure.”
Fox Business: “Small Business Sentiment Plunges to 48-Year Low as Inflation Worries Mount” (HERE)
- “Small business confidence dropped again in June as fears over white-hot inflation persisted, with the most business owners since 1980 reporting that rising prices were their single most important problem, according to a new survey published on Tuesday.”
- “Small Business Optimism Index fell to 89.5 last month, the sixth straight month of readings below the 48-year average of 98.”
- “Businesses also struggled to onboard new employees, with half of owners reporting that they could not fill open jobs. The Labor Department reported last week that there were 11.3 million open jobs at the end of May.”