Garden State Times

The National Federation of Independent Business (NFIB) has released its latest Small Business Optimism Index, highlighting the ongoing challenges faced by small businesses in New Jersey due to inflation. NFIB State Director Eileen Kean emphasized the impact of rising costs on these businesses, stating, "Inflation continues to be the main hurdle for New Jersey’s small businesses."

The index saw a rise of 2.2 points in July, reaching 93.7, marking the highest level since February 2022. However, this figure remains below the 50-year average of 98 for the 31st consecutive month. Inflation is reported as the primary concern for small business owners, with 25% identifying it as their most significant issue.

NFIB Chief Economist Bill Dunkelberg commented on the situation: "Despite this increase in optimism, the road ahead remains tough for the nation’s small business owners." He noted that cost pressures, particularly labor costs, continue to affect operations and profitability.

Key findings from the survey include a net decrease in compensation raises and inventory investment plans showing positive growth for the first time since October 2022. The percentage of owners expecting higher real sales volumes increased slightly but remained negative overall.

Job openings remain challenging to fill, with 38% of owners reporting vacancies they could not fill during July. Of those hiring or attempting to hire, a significant majority found few or no qualified applicants.

Capital outlays have seen a slight increase over recent months. In terms of sales trends, there was a net negative report on higher nominal sales over three months. Inventory gains also showed a decline.

Price hikes were most frequent in sectors such as finance and wholesale trade. A net percentage of owners reported raising average selling prices fell compared to June figures.

Labor issues persist as significant concerns alongside inflation; however, fewer owners cited labor costs as their top problem compared to previous months.

The NFIB Research Center has been collecting data through surveys since 1973 and continues its monthly releases based on responses from its membership base across various states.

For further details about NFIB's advocacy efforts and research initiatives focused on small businesses across America, more information can be found at nfib.com.