A new survey showed that small business owners in America are feeling their gloomiest in nearly five decades.
The National Federation of Independent Business said its gauge of businesses expecting better business conditions over the next six months fell to the worst reading in the 48-year history of the survey. This measure’s previous all-time high was set in April.
Inflation continues to be a problem for small businesses with 28 percent of owners reporting it is their single most important problem in operating their business. That is below the 32 percent recorded in April, the highest reading since the fourth quarter of 1980.
NFIB Chief Economist Bill Dunkelberg said, “Inflation continues to outpace compensation which has reduced real incomes across the nation,” Small business owners remain very pessimistic about the second half of the year as supply chain disruptions, inflation, and the labor shortage are not easing.”
The net percent of owners raising average selling prices increased two points to a net 72 percent, back to the highest reading in the 48-year-history of the survey last reached in March. This reading is up 40 percentage points since May of last year.
Meanwhile, Consumer prices rose 8.6 percent in May, according to the index released by the Bureau of Labor Statistics last week. That is the highest rate of inflation since 1981.