Small businesses became more optimistic last month as the economic recovery continued to gain momentum. The NFIB Small Business Optimism Index climbed above 100 for the first time since last November, with seven of the ten components improving in the latest reading.
Despite the growing confidence of small businesses, inflationary pressures are continuing to weigh. The NFIB’s report showed that the greatest share of small business owners are planning to raise prices since 1981 – a time when the economy was experiencing double-digit inflation. The NFIB elaborates on this worrisome trend by stating, “The incidence of price hikes on Main Street is clearly on the rise as owners pass on rising labor and operating costs to their customers.”
