Small Business Economic Trends: June 2024

According to the NFIB’s Small Business Economic Trends report for June 2024, inflation remains the most significant concern for small businesses, with 21% of owners identifying it as their top challenge. While the Small Business Optimism Index rose slightly to 91.5, it remains below the historical average of 98 for the 30th consecutive month, signaling ongoing pessimism on Main Street.

Rising Costs and Compensation Adjustments

In response to rising costs, many business owners are planning to increase compensation, which, in turn, leads to higher prices across various sectors, including construction, retail, and services. Despite these adjustments, 37% of small business owners are still struggling to fill job openings due to a lack of qualified applicants, and concerns about labor costs and quality continue to rank high among their challenges.

Inventory Management Challenges

Inventory management also remains a critical issue. In June, a net negative 2% of owners viewed their inventory levels as “too low,” a slight improvement from May, yet still concerning. A net negative 2% plan to invest in inventory in the coming months, reflecting ongoing caution amid economic uncertainties.

Navigating Trading Challenges with Strategic Planning

For businesses engaged in trading on platforms like commodity forex trading and other commodity trading platforms, navigating these challenges requires strategic planning. Wealthcraft offers tools that can help small businesses manage their finances and make informed decisions in this volatile environment, particularly in areas like compensation adjustments and inventory investment.

Persistent Inflationary Pressures

Despite these challenges, a net 26% of businesses are planning to raise prices in the coming months, reflecting the persistent inflationary pressures. Wealthcraft can support businesses in these endeavors by providing insights and tools tailored to the needs of small business owners, helping them stay competitive in a difficult economic climate.

Overall, the NFIB’s findings highlight the ongoing struggles of small businesses as they adapt to rising costs and labor market challenges. Wealthcraft’s resources can be instrumental in helping these businesses navigate the uncertain road ahead.

Reference: NFIB Research Center, Small Business Economic Trends, June 2024.