Small business owners across Indiana remain concerned about inflation but are getting slightly more optimistic about business conditions, a National Federation of Independent Business survey found.
About 32% of small business owners in the Hoosier State reported that inflation remained their highest concern, about five points lower than July’s reading, which was the highest since 1979.
The National Federation of Independent Business’ Small Business Optimism Index rose by 0.6 points to 91.9 last month. The reading was, however, the 11th straight month below the 49-year average of 98. Many of the survey’s readings, except for the tight labor market, pointed toward a recession or at least weak economic conditions.
“Indiana’s small business economy is recovering, but owners are still facing labor issues throughout the state. Many employers say finding the right people with the right skills is still a challenge as the new year approaches,” said Natalie Robinson, NFIB state director in Indiana. “This is especially troubling as small businesses continue dealing with inflation that’s affecting the price of everything from raw materials to their monthly rent.”
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The survey found a net negative 43% of business owners in Indiana expected better business conditions over the next six months, and 44% had job openings that were hard to fill. About 40% of business owners said they recently raised wages, while 28% plan to in the next few months.
A net of 51% of small business owners raised selling prices, and a net negative 8% expected retail sales to be higher, the survey found.
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About 55% of business owners have made capital outlays over the past six months, up 1 percentage point from October. About 39% spent on new equipment, 19% on vehicles and 12% on new or expanded facilities.
About 24% plan capital outlays in the next few months, up one percentage point from October, the Small Business Optimism Index found.
A net negative 7% of small business owners reported higher sales over the past three months. A net negative 8% expect that retail sales will improve, a 5 percentage point increase but still a weak reading, according to the NFIB.
About 29% of business owners said supply chain disruptions from the coronavirus pandemic are still having a significant impact on their operations, the survey found. About 34% report a moderate impact and 26% a mild impact.
Just 11% of small business owners said they had experienced no recent impact from supply chain disruptions.
