SMALL BUSINESS SNAPSHOT
Washington, October 26, 2023
In the month of October, inflation remains a top issue small business owners are facing. The Consumer Price Index (CPI) data, released earlier this month, showed the inflation rate is currently sitting at 3.7 percent year over year, at the same level as last month. Core CPI, which excludes the more volatile measurements of food and energy, increased 0.3 percent. Inflation and labor were tied as the top issues small business owners are facing with 43 percent unable to fill open positions. The National Federation of Independent Business (NFIB) monthly Small Business Optimism Index decreased 0.5 points, marking the 21st straight month below the 48-year average of 98 percent. Inflationary pressures continue to hurt small businesses with a year over year increase in the Producer Price Index of 2.2 percent, the largest increase since rising 2.3 percent in April. Meanwhile, future business outlooks are declining, with a net negative of 41 percent of small business owners expecting better business conditions over the next six months, down six percent from last month. Despite hopes of lessening inflation, Main Street America continues to be weighed down by rising prices while also facing tighter access to credit, as lenders continue to become more selective.
The below October 2023 Small Business Snapshot features numbers and updates to provide more insight into the current small business economy.
MAIN STREET MEASUREMENTS: