Christopher Carlozzi NFIB/Massachusetts State Director | NFIB Massachusetts
Christopher Carlozzi NFIB/Massachusetts State Director | NFIB Massachusetts
The National Federation of Independent Business (NFIB) released its latest Small Business Optimism Index, highlighting ongoing challenges faced by small businesses in Massachusetts due to inflation. According to NFIB State Director Christopher Carlozzi, "Inflation continues to be the main hurdle for Massachusetts’s small businesses." He noted that rising costs are forcing business owners to adjust operations without much relief from state policies.
The index increased by 2.2 points in July, reaching 93.7, the highest since February 2022. However, it remains below the 50-year average of 98 for the 31st consecutive month. Inflation is cited as the primary concern for 25% of small business owners, a four-point increase from June.
NFIB Chief Economist Bill Dunkelberg stated, "Despite this increase in optimism, the road ahead remains tough for the nation’s small business owners." He emphasized that cost pressures, particularly labor costs, continue to affect business operations and profitability.
Key findings from the survey include a net 33% of businesses reporting raised compensation in July, down five points from June. A net 2% plan inventory investment in upcoming months, marking an improvement since October 2022. The percentage of owners expecting higher real sales volumes rose to a net negative 9%, while those raising average selling prices fell to a net 22%.
The survey also revealed that job openings remain challenging to fill, with 38% of owners reporting unfilled positions. Among those hiring in July, a significant majority found few or no qualified applicants.
Capital outlays were reported by 54% of owners over the past six months. Planned capital expenditures remain steady at 23%. Additionally, a net negative 16% reported higher nominal sales recently.
The NFIB has been conducting these surveys since the fourth quarter of 1973 and monthly since 1986. The data reflects responses from NFIB members and is released on the second Tuesday each month.
For further information about NFIB's advocacy efforts on behalf of small businesses across America, visit their website at nfib.com.
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