Inflation isn’t hurting small businesses enough to tank the disad
Kate Rogers ’24, February 22, “Economic confidence among small business owners hits highest level since Biden took office,” CNBC, accessed July 18, 2024, https://www.cnbc.com/2024/02/22/small-business-confidence-hits-highest-level-since-biden-took-office.html#:~:text=The%20Small%20Business%20Confidence%20Index,economy%2C%20even%20as%20challenges%20linger.
Inflation — which has proven to be stubborn based on the most recent data even as significant progress has been made in bringing prices down from a peak level — continues to weigh on owners, with nearly a third saying it is currently the biggest risk to business. That is more than double the amount who cite consumer demand, interest rates, labor shortages and supply chain disruptions as key issues.
“Inflation is still top of mind,” Gutierrez said. “But we’re seeing this cautious optimism on inflation, and costs in general.”
Confidence in the Fed to control inflation is now at 35% among small business owners, the highest it has been since the beginning of 2022. The percentage of business owners (29%) who say inflation has peaked, while it remains a minority of the survey audience, is also at its highest level since the beginning of 2022.