Small businesses in the US are facing a decrease in optimism as they struggle with the effects of the COVID-19 pandemic, according to the National Federation of Independent Businesses (NFIB). The sector’s sentiment index dropped to 88.5 in March, the lowest level since December 2012, indicating that business owners are still grappling with economic challenges.
NFIB’s chief economist, Bill Dunkelberg, noted that businesses are facing economic headwinds, with inflation being the top concern for owners. The March 2024 survey by NFIB’s Research Center collected data from small businesses, revealing that sales fell eight points to a net negative of 18%. This decline in sales was the main reason for the drop in the Index.
The potential slowdown in economic activity and inflation worries have led small business owners to hold off on plans to fill open positions. Only 11% of owners are looking to create new jobs in the next three months, the lowest level since May 2020. Dunkelberg pointed out that the small business labor market remains tight, and owners are facing challenges in retaining and recruiting employees.
In other retail news, Best Buy is reportedly planning to lay off a portion of its tech support team while McDonald’s and Chipotle may be considering raising prices due to California’s minimum wage hike. Express may also be contemplating filing for bankruptcy soon.
