As we enter this year’s holiday season, American small businesses and families are bracing for the high prices of goods and services coupled with skyrocketing energy costs. Wholesale inflation is forcing Main Street to choose whether to raise their prices or shutter their doors. Families will be forced to choose between gifts for their loved ones or heating their homes. This is all thanks to the Democrats’ radical spending and self-caused inflation crisis. For a season that usually calls for happiness and excitement, Americans will instead be worrying about their finances and safety.
The below November 2022 Small Business Snapshot features numbers and news updates to provide more insight into the current small business economy.
MAIN STREET MEASUREMENTS:
CONSUMER PRICE INDEX (INFLATION)
- The prices consumers paid for goods and services increased .4 percent in October as compared to September but totaled a 7.7 percent increase when measured over the last 12 months.
PRODUCER PRICE INDEX
- Wholesale prices increased .2 percent in October but registered an increase of 8.0 percent year over year.
JOB OPENINGS
- At the end of September, businesses were unable to fill 10.7 million jobs and 4.1 million workers quit their jobs.
UNEMPLOYMENT RATE
- 261,000 jobs were created in October, and the unemployment rate increased to 3.7 percent. 6.1 million Americans are unemployed.
LABOR FORCE PARTICIPATION RATE
- The labor force participation rate decreased to 62.2 percent in October.
UNEMPLOYMENT INSURANCE WEEKLY CLAIMS
- For the week ending November 5, 2022, the Department of Labor reported that initial unemployment claims were 225,000.
PERSONAL CONSUMPTION EXPENDITURES PRICE INDEX (CORE PCE which excludes energy and food)
- The core PCE price index increased to 5.1 percent in September when measured year over year.
BUSINESS FORMATION STATISTICS
- Business formation applications totaled 432,834 in October marking an increase of 1.2 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 142,323 (an increase of 1.1 percent) in October.
CONSUMER SENTIMENT
- The initial consumer sentiment reading for November registered 54.7. In comparison, the November 2021 reading was 67.4.
COMMERCIAL AND INDUSTRIAL LOAN DATA
- As of November 10, 2022, commercial and industrial loans totaled $2.780 trillion.
SBA LENDING DATA
- The SBA approved a total of $2.6 billion 7(a) Loans through November 4, 2022.
NEWS YOU CAN USE:
Job Creators Network: “Historic Inflation Persists in October at 7.7%, Job Creators Network Reacts” (HERE)
- “Today’s CPI report shows that runaway inflation is persisting as a result of President Biden and Congressional Democrats’ reckless spending and bad policies.”
- “Not only is Biden responsible for this inflationary fire burning holes in Americans’ pockets but he also has no plans to bring prices down.”
National Federation of Independent Business: “Small Businesses Struggle with Inflation, Labor Shortages” (HERE)
- “Inflation continues on Main Street with 33% reporting it’s their most important problem.”
- “Inflation, supply chain disruptions, and labor shortages continue to limit the ability of many small businesses to meet the demand for their products and services.”
- “46% of owners reported job openings that were hard to fill, unchanged from September. Of those hiring or trying to hire, 90% of owners reported few or no qualified applicants for the positions they were trying to fill.”
The Washington Times: “Small Businesses Struggle to Make Rent as Inflation Pressures Intensify” (HERE)
- “More small business owners are struggling to pay their monthly rent on time as high inflation has eaten into expected holiday-season earnings.”
- “Business tracker Alignable found in a monthly poll of 4,789 small and medium-sized businesses that 37%, including 43% of retailers, were delinquent on their rent payments in October.”
- “That’s up 30% in September and the highest month-over-month increase this year.”
Fox News Business: “Fed Official Throws Cold Water on Report of Waning Inflation: ‘We Have a Ways to Go’” (HERE)
- “Data showed just 0.3% growth in inflation from September to October, the smallest monthly bump all year, but Waller cautioned that Americans shouldn't read too much into it.”
- “Inflation has been the top issue on Americans’ minds throughout 2022, with polls showing voters cared more about it than anything else in the midterm elections.”
- “Scorching-hot inflation has created severe financial pressures for most U.S. households, which are forced to pay more for everyday necessities like food and rent.”
CNBC: “Wholesale Prices Rose 0.2% in October, Less than Expected, as Inflation Eases” (HERE)
- “The producer price index rose 0.2% in October, below the 0.4% estimate.”
- “A significant contributor to the slowdown in wholesale inflation was a 0.1% decline in services, the first outright decline in that measure since November 2020.”
- “On a year-over-year basis, PPI rose 8% compared to an 8.4% increase in September.”
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