UP slightly seems better than down slightly … A few excerpts and A LINK thru to the report.
The NFIB Small Business Optimism Index increased slightly in November by 0.2 points to 98.4. Four of the 10 Index components improved, four declined, and two were unchanged. The NFIB Uncertainty Index decreased four points to 63.
“As the end of the year nears, the outlook for business conditions is not encouraging to small business owners as lawmakers propose additional mandates and tax increases,” said NFIB Chief Economist Bill Dunkelberg. “Owners are also pessimistic as many continue managing challenges like rampant inflation and supply chain disruptions that are impacting their businesses right now.”
Key findings include:
Owners expecting better business conditions over the next six months decreased one point to a net negative 38%, tied for the 48-year record low reading. This indicator has declined 18 points over the past four months to its lowest reading since November 2012.
The net percent of owners raising selling prices increased six points to a net 59% (seasonally adjusted), the highest reading since October 1979.
Seasonally adjusted, a net 54% of owners plan price hikes, up three points from October and a 48-year record high reading.
Forty-eight percent of owners reported job openings that could not be filled, a decrease of one point from October.
Another excerpt on inflation
… The net percent of owners raising average selling prices increased 6 points to a net 59 percent seasonally adjusted. Unadjusted, 3 percent (down 3 points) reported lower average selling prices and 59 percent (up 2 points) reported higher average prices. Price hikes were most frequent in wholesale (88 percent higher, 0 percent lower), construction (75 percent higher, 7 percent lower), and manufacturing (66 percent higher, 1 percent lower). Seasonally adjusted, a net 54 percent plan price hikes (up 3 points)…
Set that up against compensation and earnings
…Seasonally adjusted, a net 44 percent reported raising compensation, unchanged from October and a 48-year record high reading. A net 32 percent plan to raise compensation in the next three months, unchanged from October’s record high reading. Ten percent cited labor costs as their top business problem (unchanged) and 29 percent said that labor quality was their top business problem (up 5 points). The frequency of reports of positive profit trends remained at a net negative 17 percent. Among owners reporting lower profits, 32 percent blamed the rise in the cost of materials, 25 percent blamed weaker sales, 9 percent cited labor costs, 9 percent cited the usual seasonal change, 16 percent cited lower prices, and 2 percent cited higher taxes or regulatory costs. For owners reporting higher profits, 61 percent credited sales volumes, 11 percent cited usual seasonal change, and 17 percent cited higher prices….
For more and ALL the context, HERE IS LINK thru to the full PDF of the November report: