![]() With an improving economy, more and more of these hikes will “stick”. Plans to raise prices rose 3 points to a net seasonally adjusted 24 percent of owners, the highest reading in 30 months. Confidence among small businesses slumped to a decade low last month amid gloomier expectations for sales, earnings and economic growth, the National Federation of Independent Business said Tuesday. Economy NFIB small business optimism edged higher in may Jun. Note that these hikes started before higher gas and energy prices became a real issue except for transportation firms and those with delivery services. The exact legal definition of a small business can vary from place-to-place. The “fire sale” is over and profits are badly in need of some price support. A small business is a corporation, partnership, or sole proprietorship that has a lower number of employees (and typically lower revenue) than larger businesses. In fact, they haven’t felt this pessimistic since June of 2022, when inflation was peaking at 9.1. A major force behind the price hikes is the elimination of inventory excesses which appeared in 2008 when consumers decided to raise their saving rate from 1 percent to about 6 percent, a reduction in consumption spending of about half a trillion dollars. As it turns out, small business owners aren’t feeling very hopeful about the near future. In March, 24 percent planned hikes in average selling prices with many by 10 percent or more. In March, a net 9 percent reported raising average selling prices, a gain of 33 percentage points from the low reading in 2009 and 20 points more than last September! Inflation is back on Main Street. While this slight fall was unexpected, the rise in prices continues to be the big concern. Account icon An icon in the shape of a person's head and shoulders. In addition to the previous tweet, the NFIB Small Business Optimism Survey for May also revealed that the outlook for General Business Conditions is worsening again from already depressed levels.
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