The latest National Federation of Independent Business (NFIB) Small Business Optimism Index – released Tuesday – paints a picture of continued difficulties for the state’s small and independent business community.
“Inflation continues to be the main hurdle for New Jersey’s small businesses,” said National Federation of Independent Business (NFIB) State Director Eileen Kean. “Cost pressures on Main Street have not eased much, and small business owners continue to adjust business operations to accommodate the rising prices.”
25% of small business owners continue to identify inflation as “their single most important problem in operating their business,” and that percentage is actually four points higher than it was in NFIB’s June 2024 survey.
“Despite this increase in optimism, the road ahead remains tough for the nation’s small business owners,” added NFIB Chief Economist Bill Dunkelberg. “Cost pressures, especially labor costs, continue to plague small business operations, impacting their bottom line. Owners are heading towards unpredictable months ahead, not knowing how future economic conditions or government policies will impact them.”
According to NFIB, “[s]easonally adjusted, a net 33% reported raising compensation in July, down five points from June and the lowest reading since April 2021.”
- A net 2% (seasonally adjusted) of owners plan inventory investment in the coming months, up four points from June. The last time inventory investment plans were positive was in October 2022.
- The net percent of owners expecting higher real sales volumes rose four points in July to a net negative 9% (seasonally adjusted), the highest reading of this year.
- The net percent of owners raising average selling prices fell five points from June to a seasonally adjusted net 22%.
- Seasonally adjusted, a net 24% plan price hikes in July (down two points). This is the lowest reading since April 2023.
- Thirty-eight percent (seasonally adjusted) of all owners reported job openings they could not fill in the current period, up one point from June.
To make matters worse, NFIB’s recent monthly jobs report discovered 38% of small business owners reporting positions which they couldn’t fill; nearly half of said they encountered either few or no qualified applicants.
