Inflation Continues to Bedevil Main Street Businesses

May 14, 2024

Inflation Continues to Bedevil Main Street Businesses

FOR IMMEDIATE RELEASE Contact: Tony Gagliardi, Colorado State Director, Tony.Gagliardi@nfib.org or Tony Malandra, Senior Media Manager, Anthony.Malandra@nfib.org DENVER, May 14, 2024—Inflation continues to hamper the nation’s Main Street enterprises, according to the latest Small Business Economic Trends (SBET) report issued today by the National Federation of Independent Business (NFIB). Also known as the Optimism Index, the latest SBET showed inflation as the No. 1 concern of 22% of small business owners surveyed, followed by the problem of labor quality at 19%. “For the first time in a long time, it delights me to say the Colorado General Assembly is not exacerbating the gloomy small business mood but actually helping to brighten it,” said Tony Gagliardi, NFIB’s Colorado state director in reference to the recent adjournment of the 2024 session that left property tax relief in its wake, along with no harmful environmental over-reach laws. “Now, if only Congress could get its act in gear and pass the Main Street Tax Certainty Act, which will keep the Small Business Deduction (Section 199A) alive past 2025, we might see prosperity for all finally get some traction.” From NFIB Chief Economist Bill Dunkelberg “Cost pressures remain the top issue for small business owners, including historically high levels of owners raising compensation to keep and attract employees. Overall, small business owners remain historically very pessimistic as they continue to navigate these challenges. Owners are dealing with a rising level of uncertainty but will continue to do what they do best – serve their customers.” NFIB’s monthly Small Business Economic Trends (SBET) report is the gold standard measurement of America’s small business economy. Used by the Federal Reserve, Congressional leaders, administration officials, and state legislatures across the nation, it’s regarded as the bellwether on the health and welfare of the Main Street enterprises that employ half of all workers, generate more net new jobs than large corporations, and gave most of us the first start in our working life. The SBET (Optimism Index) is a national snapshot of NFIB-member, small-business owners not broken down by state. The typical NFIB member employs 10 people and reports gross sales of about $500,000 a year. Highlights from Today’s Report

Twenty-two percent of owners reported that inflation was their single most important problem in their business, down three points from March but still the number one problem for small business owners.
A net 26% (seasonally adjusted) of owners plan price hikes in April, down seven points and the lowest reading since April of last year.
Forty percent (seasonally adjusted) of all owners reported job openings they could not fill in the current period, up three points from March, which was the lowest reading since January 2021.
The net percent of owners raising average selling prices fell three points from March to a net 25% seasonally adjusted.

Keep up with the latest Colorado small-business news at www.nfib.com/CO and on Twitter @NFIB_CO ### For 80 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is a nonprofit, nonpartisan, and member-driven association. Since its founding in 1943, NFIB has been exclusively dedicated to small and independent businesses and remains so today. For more information, please visit nfib.com. NFIB Colorado 1700 Lincoln St. 17th Floor Denver, CO 80203 303-831-6099 NFIB.com/CO Twitter: @NFIB_CO