DENVER– The National Federation of Independent Business released its Small Business Optimism Index report today, showing that it decreased in July to 99.7, reversing June’s gains.
Tony Gagliardi, Colorado state director, said, “Instead of things getting easier for small-business owners to get back on their feet, they continue to face a multitude of barriers, such as getting employees back to work and looming unemployment tax increases possibly into triple-digits thanks to having to pay interest on a $1 billion loan from the federal government due to the state’s unemployment trust fund becoming insolvent. “
Gagliardi added that this difficulty is compounded by a lack of truck drivers and the difficulty in paying entry-level workers above minimum wage.
“When you walk into a small business, take time to thank the owner for his or her efforts, and remember, for every dollar spent in a local small business, seventy cents remain in the community,” he said.
Chief economist Bill Dunkelberg said, “Small business owners are losing confidence in the strength of the economy and expect a slowdown in job creation. As owners look for qualified workers, they are also reporting that supply chain disruptions are having an impact on their businesses. Ultimately, owners could sell more if they could acquire more supplies and inventories from their supply chains.”
Overall, the Optimism Index decreased in July, and other findings from the report show the following:
- Sales expectations over the next three months decreased 11 points to a net negative 4% of owners.
- Owners expecting better business conditions over the next six months decreased eight points to a net negative 20%.
- Earnings trends over the past three months decreased eight points to a net negative 13%.
To learn more about the optimism index, visit the NFIB website.