Jason Katz, a UBS managing director and senior portfolio manager, said the 2% inflation target was arbitrary for Barney & Company.
small business optimism A new report from the National Federation of Independent Business (NFIB) shows that sales fell to their lowest level in more than a decade in March.
The NFIB’s Small Business Optimism Index, compiled monthly through a survey of small businesses, fell 0.9 points in March to 88.5, its lowest reading since December 2012 and the index’s 50-year average. This was the 27th consecutive month of decline. 98’s.
NFIB Chief Economist Bill Dunkelberg said optimism is waning as small business owners “continue to deal with economic headwinds,” adding that “inflation is once again Main Street’s No. 1 business problem. “The labor market has only slightly eased,” he added.
A quarter of small business owners say: Inflation was the most important problem The proportion of businesses experiencing difficulties operating due to increased input costs and labor costs increased by 2 percentage points from February and 1 percentage point from 24% a year earlier.
Jamie Dimon warns that inflation, interest rates may remain high
NFIB’s Small Business Optimism Index fell in March to its lowest level since December 2012. (Noam Garay/Getty Images/Getty Images)
Percentage of owners who reported raising their average prices due to concerns about inflation Selling price It rose 7 points from February to a net 28% on a seasonally adjusted basis. The net percentage of small and medium-sized business owners who said their real sales would increase further decreased by 8 points from February, to a net negative 18%.
NFIB wrote that the report’s findings show “the small business sector is showing signs of a potential slowdown.”
The report also found that 37% of small business owners have job openings they can’t apply for this season. quality of labor The company’s top operating margin rose 2 points to 18%.
The proliferation of small businesses in the United States started as a side hustle.
In the latest NFIB Small Business Optimism Index, 37% of small businesses reported having unfilled jobs. (Photo by Jonathan Wiggs/The Boston Globe via Getty Images / Getty Images)
It also found that 38% reported increasing their compensation, an increase of 3 percentage points from February, the lowest figure since May 2021.
Additionally, a net of 21% of small business owners plan to increase their compensation in the next three months, an increase of 2 percentage points from February.
NFIB writes: federal reserve He “noted” the lingering effects of inflation on the economy, changed his rhetoric about possible interest rate cuts, and reiterated the need to rein in inflation.
March employment report: Health and government sectors add the most workers
Fed Chairman Jerome Powell said the Fed will decide to cut interest rates based on future economic data. (Samuel Corum/Getty Images/Getty Images)
higher interest rate Small businesses are finding it increasingly difficult to raise capital, with a net 8% saying it was harder to get their last loan than their last. A net 17% of small business owners said they paid a higher interest rate on their most recent loan, an increase of 1 percentage point from February.
“The expected rate cut schedule for 2024 has sharply declined over the past few months from a possible 6-7 rate cuts to 2-3 rate cuts…likely,” the NFIB said. “The data certainly does not support rate cuts at the next two FOMC meetings.”
“BLS reported 303,000 jobs added For the March labor market. “While there are no signs of workforce weakness (but watch out for revisions), 71,000 people come from the public sector, most of them at local level,” the report said.
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NFIB added, “While half of the Fed’s mandate looks good, the other half remains dissatisfied with Main Street.” “In the meantime, small businesses will have to manage slightly higher financing costs.”
