Small Business Optimism Index Dropped 3.6 Points

Wednesday, July 13th, 2022 -- 11:00 AM

The NFIB Small Business Optimism Index dropped 3.6 points in June to 89.5, marking the sixth consecutive month below the 48-year average of 98.

Small business owners expecting better business conditions over the next six months decreased seven points to a net negative 61%, the lowest level recorded in the 48-year survey.

Expectations for better conditions have worsened every month this year. Inflation continues to be a top problem for small businesses with 34% of owners reporting it was their single most important problem in operating their business, an increase of six points from May and the highest level since quarter four in 1980.

State-specific data is unavailable, but NFIB State Director Bill Smith said, “Wisconsin isn’t exempt from the challenges facing small businesses elsewhere in the country, but owners here are determined to get through this and continue to provide the goods and services their neighbors need in these uncertain times.”

Key findings of the national survey include: The net percent of owners who expect real sales to be higher decreased 13 points from May to a net negative 28%, a severe decline.

Fifty percent of owners reported job openings that could not be filled, down one point from May, but historically very high. The net percent of owners raising average selling prices decreased three points to a net 69% seasonally adjusted, following May’s record high reading.

Feel free to contact us with questions and/or comments.