Small business optimism dips but remains high
What happened
The Small Business Optimism Index dipped for the third month to 98.8, but the Small Business Employment Index suggests a balanced labor market.
Why it matters
The decline in the Small Business Optimism Index was primarily driven by concerns about inflation and labor quality. 23% of owners cited inflation as their single most important problem. Despite the dip in overall optimism, job creation plans among small businesses remain steady. 19% plan to create new jobs in the next three months. A net 0% of owners reported increasing compensation, offsetting a 4-point increase from January. This indicates that wage pressures may be stabilizing.
Key numbers
- The Small Business Optimism Index dipped for the third month to 98.8, but the Small Business Employment Index suggests a balanced labor market.
- 23% of owners cited inflation as their single most important problem.
- 19% plan to create new jobs in the next three months.
- A net 0% of owners reported increasing compensation, offsetting a 4-point increase from January.
What happens next
- Despite the dip in overall optimism, job creation plans among small businesses remain steady.
- 19% plan to create new jobs in the next three months.
- This indicates that wage pressures may be stabilizing.
Sources
Quick answers
What happened in Small business optimism dips but remains high?
The Small Business Optimism Index dipped for the third month to 98.8, but the Small Business Employment Index suggests a balanced labor market.
Why does Small business optimism dips but remains high matter?
The decline in the Small Business Optimism Index was primarily driven by concerns about inflation and labor quality. 23% of owners cited inflation as their single most important problem. Despite the dip in overall optimism, job creation plans among small businesses remain steady. 19% plan to create new jobs in the next three months. A net 0% of owners reported increasing compensation, offsetting a 4-point increase from January. This indicates that wage pressures may be stabilizing.
