Empire State Today

The National Federation of Independent Business (NFIB) has released its latest Small Business Optimism Index, highlighting ongoing challenges for small businesses in New York due to inflation. NFIB State Director Ashley Ranslow commented on the impact of rising costs: “Inflation continues to be the main hurdle for New York’s small businesses,” she said. Ranslow emphasized that these cost pressures are significantly affecting both business owners and residents, urging elected officials to reconsider policies that might exacerbate affordability issues.

In July, the index rose by 2.2 points to 93.7, marking its highest level since February 2022. Despite this improvement, it remains below the 50-year average for the 31st consecutive month. Inflation is cited as the primary concern by 25% of business owners, an increase from June's figures.

NFIB Chief Economist Bill Dunkelberg remarked on future uncertainties: “Despite this increase in optimism, the road ahead remains tough for the nation’s small business owners.” He noted that labor costs and other financial pressures continue to challenge operations.

Key findings from the survey indicate a decrease in compensation raises and inventory investments among small businesses. A net 33% reported raising compensation in July—down five points from June—and only a net 2% plan inventory investments in upcoming months.

Furthermore, job openings remain hard to fill with a seasonally adjusted 38% of owners reporting unfilled positions. Among those hiring or attempting to hire in July, a significant majority found few or no qualified applicants.

On capital expenditures, over half of surveyed owners made outlays in recent months; however, plans for future spending have not increased. Additionally, reports on profit trends were predominantly negative.

Only two percent of respondents indicated unmet borrowing needs while three percent identified financing as their top issue—a slight decline from previous data.

The NFIB Research Center conducts these surveys monthly with results typically published on the second Tuesday each month. This report reflects data collected during July 2024.

For more information about NFIB's work advocating for small businesses across America since its founding in 1943 visit nfib.com.