NFIB Research Center Executive Director Holly Wade discussed the latest Small Business Optimism Index on Bloomberg: The Close with hosts Scarlet Fu and Romaine Bostick. Wade highlighted the findings from NFIB's February SBET survey, indicating that small business owners are maintaining optimism despite ongoing inflationary pressures and evolving economic conditions.
In her discussion, Wade noted a slight decrease in the index from a post-election high of 105 to 100.7. She stated, "We’re now down to 100.7 – still a few points above the 51-year average of the survey. So, we’re still in a pretty good space as far as small business owner sentiment in February."
Wade further explained that labor issues and costs have surpassed inflation concerns for February. She mentioned, "[Labor issues and labor costs] combined have kind of outpaced the inflation picture for at least the month of February." Despite this shift, she acknowledged that "16% are saying that inflation is their single biggest problem," attributing some concerns to compensation pressures.
Many small business owners have increased compensation to retain and recruit employees for positions they are eager to fill. Wade emphasized that "a lot of cost pressures continue but labor is the name of the game right now for a lot of small business owners," particularly in construction and transportation industries.
For more than eight decades, NFIB has advocated for America's small and independent businesses across Washington, D.C., and all state capitals. As a nonprofit, nonpartisan organization driven by its members since its founding in 1943, NFIB remains committed to supporting these businesses today.
