Ohio small business optimism falls in August

(The Center Square) – Ohio small business owners’ optimism dipped in August, a month after showing positive signs.

The National Federation of Independent Business Optimism Index fell 2.5 points in August, easing July’s gains and continuing a 32-month stretch below the 50-year average.

“The mood on Main Street worsened in August, despite last month’s gains,” NFIB Chief Economist Bill Dunkelberg said. “Historically high inflation remains the top issue for owners as sales expectations plummet and cost pressures increase. Uncertainty among small business owners continues to rise as expectations for future business conditions worsen.”

The U.S. Department of Labor reported the rate of inflation hit a three-year low of 2.5% in August, nearly a point lower than the long-term average of 3.28%. August was the fifth consecutive month inflation dropped.

NFIB’s report showed the top issue among small business owners is inflation.

Twenty-four percent said inflation is the top operating issue, but that is down a point from July.

The NFIB Optimism Index hit 91.2 in August, compared to the 50-year average of 98. Also, the Uncertainty Index rose to 92, its highest level since October 2020.

“The Uncertainty Index reaching the highest level since 2020 is a snapshot into how Ohio small business owners are feeling,” NFIB Ohio State Director Chris Ferruso said. “Owners are concerned about the future of their business as inflation remains the single top issue facing Main Street. Congress can help relieve this uncertainty by making the 20% Small Business Deduction permanent and avoid a massive tax hike on Ohio’s small businesses next year.”

The report also showed 40% of small business owners had job openings they could not fill, up 2 points from July, and 90% reported few or no qualified applicants for positions they were trying to fill.

The net percent of owners raising prices fell 2 points.