Business optimism falls; uncertainty rises

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(The Center Square) – Business optimism is falling, and uncertainty is rising, according to a new report from one of the nation’s largest business organizations.

For the first time in three months, the National Federation of Independent Business Optimism Index fell in September. Also, the group’s Uncertainty Index, which measures business owners’ concern, jumped in August to its fourth-highest level in more than 50 years.

While state-specific data isn’t available, NFIB Ohio State Director Jared Weiser said several issues are impacting owners throughout the state.

"Ohio's small business owners are working hard to keep up with their customers' demands, but it's not without some challenges,” Weiser said. “With supply chain disruptions, a lack of qualified job applicants, and sales uncertainty, our members are feeling less optimistic about the economy. We will continue to work with Gov. Mike DeWine and members of the Ohio General Assembly to find ways to ease these issues for Main Street."

The business poll comes at the same time as The Center Square Voters’ Voice Poll, a national sampling showing that more than half of voters disapproved or strongly disapproved of how second-term Republican President Donald Trump is handling the economy.

The same poll said 55% of registered voters believe the country is headed in the wrong direction, and that voters are more concerned about rising costs and inflation than any other issue.

Small business owners seem to agree.

The Optimism Index fell 2 points, but it stayed above the survey’s 52-year average of 98. The Uncertainty Index, however, ballooned 7 points to 100.

Inflation and supply chain issues topped the list of concerns for businesses, and the number of owners saying they had raised prices jumped by 3 points. Also, the number of owners who said they will raise prices in the next three months increased 5 points from August.

NFIB’s report revealed the number of business owners who expect business to improve dropped 11 points from August.