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Small Businesses See Inflation Replace Labor Quality As Top Concern

US DATA
  • The NFIB small business index increased a little more than expected to 91.9 (cons 91.0) in Dec from 90.6, marking a joint high with July and before that Nov’22.
  • It’s seen a recovery off a low of 89.0 in April but remains firmly below the ~105 averaged through 2017-19 or 98 from its 50-year average.
  • “Twenty-three percent of small business owners reported that inflation was their single most important problem in operating their business, up one point from last month, and replacing labor quality as the top concern.”
  • Within the survey, a net 32% planned price hikes in the next three months, down from 34% in November, but having averaged 32% since September after bottoming out at 21% in April.
  • Having averaged 22% through 2017-19, this >30% level continues to imply difficulty in getting inflation all the way back to the 2% target.

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