With nearly one in four small business owners (24%) pointing to inflation as their biggest issue, the National Federation of Independent Business reports optimism across the industry was again on the decline in Arizona last month, marking the 15th consecutive month figures fell below the 49-year average of 98.
For March, the NFIB’s Small Business Optimism Index fell by 0.8 percentage points. Less than half (47%) of small business owners are optimistic that conditions will improve over the next six months.
“Small business owners are cynical about future economic conditions,” NFIB Chief Economist Bill Dunkelberg said in a news release. “Hiring plans fell to their lowest level since May 2020, but strong consumer spending has kept Main Street alive and supported strong labor demand.”
Other key findings include 43% of owners reporting they are still experiencing difficulty filling job openings, down from 47% in February. The net percent of owners raising average selling prices decreased one point to a net 37% seasonally adjusted.
Although stat-specific data is available, NFIB State Director Chad Heinrich added the vibe seems much the same across the board among owners.
“Optimism continues to wane among small business owners as inflation continues to put pressure on prices and willing workers remain hard to find,” he said. “Small business owners do look fondly at several key policy proposals making their way through the state legislature that will tackle issues of property tax equity, government permitting, and local government labor regulations. Here’s hoping we have a strong set of pro-small-business legislators to champion the key issues through the process and a Governor who will respond appropriately in support of Arizona’s entrepreneurs.”
As reported as part of the monthly jobs report in February, a seasonally adjusted net 15% of owners indicate they are planning to add to their staff over the next 90 days, though a little more than 1-in-5 owners reported few qualified applicants had emerged for openings already available.
Overall, labor quality remains just behind inflation as the top business problem for owners.
Republished with the permission of The Center Square.
