Snapshots

SMALL BUSINESS SNAPSHOT

APRIL 2022

Whether it’s skyrocketing inflation or an energy crisis, America’s small businesses are facing historical challenges. The current administration is owning the 40-year-high inflation crisis Americans are experiencing on a daily basis. The state of small businesses in America continues to be in crisis due to reckless spending and failed policies. Backward priorities mixed with poor leadership have inhibited our primary job creators from bouncing back from a global pandemic. When America’s small businesses are strong, America’s economy is strong. It is past time for Washington to step out of the way and allow the enactment of pro-growth policies and the removal of burdensome overregulation in order to reinvigorate the small business economy.

The below April 2022 Small Business Snapshot features numbers and news updates to provide more insight into the current small business economy.

MAINSTREET MEASUREMENTS:

CONSUMER PRICE INDEX (INFLATION)

  • The prices consumers paid for goods and services increased by 1.2 percent in March as compared to February, totaling an 8.5 percent increase when measured over the last 12 months.

PRODUCER PRICE INDEX

  • Producer price index increased 1.4 percent in March and 11.2 percent year over year.

JOB OPENINGS

  • At the end of February, businesses were unable to fill a near-record 11.3 million jobs and 4.4 million workers quit their jobs.

UNEMPLOYMENT RATE

  • 431,000 jobs were created in March, and the unemployment rate decreased to 3.6 percent. 6 million Americans are unemployed.

LABOR FORCE PARTICIPATION RATE

  • The labor force participation rate remained stagnant at 62.4 percent in March.

UNEMPLOYMENT INSURANCE WEEKLY CLAIMS

  • For the week ending April 9, 2022, the Department of Labor reported that initial unemployment claims were 185,000.

PERSONAL CONSUMPTION EXPENDITURES PRICE INDEX (CORE PCE which excludes energy and food)

  • Core PCE increased to 5.4 percent in February when measured year over year.

BUSINESS FORMATION STATISTICS

  • Business formation applications totaled 413,958 in March marking a decrease of .9 percent over last month. 

HIGH PROPENSITY BUSINESS FORMATION STATISTICS

  • New businesses categorized as having an increased likelihood of having employees and a payroll, otherwise known as High Propensity Businesses, totaled 133,315 (a decrease of 1.1 percent) in March.

CONSUMER SENTIMENT

  • Consumer sentiment decreased to 62.8 in February.

COMMERCIAL AND INDUSTRIAL LOAN DATA

  • Through March, commercial and industrial loans totaled $2.519 trillion.

SBA LENDING DATA

  • The SBA approved a total of $11.2 billion 7(a) Loans through April 8, 2022.  

NEWS YOU CAN USE:

Job Creators Network: “Biden’s Policies, Not Russia, to Blame for Record Wholesale Cost Inflation” (HERE)

  • Small businesses are getting crushed by wholesale cost increases well into the double-digits. Unlike big businesses, they cannot just pass these costs on to their consumers in the form of price increases.”
  • “Small businesses also don’t benefit from economies of scale and preferential purchasing agreements that can blunt the impact of inflation. As a result, small businesses are seeing their already slim profit margins disappear.”
  • This runaway inflation is a direct result of President Biden and Congressional Democrats’ reckless spending that has devalued the dollar. Russia is merely a scapegoat.”

National Federation of Independent Business: “Inflation Overtakes Labor Quality as Top Business Problem for Small Businesses” (HERE)

  • “The NFIB Small Business Optimism Index decreased in March by 2.4 points to 93.2, the third consecutive month below the 48-year average of 98.”
  • “‘Inflation has impacted small businesses throughout the country and is now their most important business problem,” said NFIB Chief Economist Bill Dunkelberg. “With inflation, an ongoing staffing shortage, and supply chain disruptions, small business owners remain pessimistic about their future business conditions.’”
  • The net percent of owners raising average selling prices increased four points to a net 72% (seasonally adjusted), the highest reading recorded in the series. Unadjusted, three percent of owners reported lower average selling prices and 71% reported higher average prices.”

National Association of Home Builders: “Recession Risks are Rising” (HERE)

  • Higher inflation and business costs, combined with increasing interest rates, tightened monetary policy and waning fiscal stimulus, will slow overall economic growth in 2022.”

American Action Forum: “Hawkish Fed Talk” (HERE)

  • “The lay of the monetary landscape is quite clear. Inflation has sprung up rapidly to nearly 8 percent as measured by the Consumer Price Index, and several multiples of the 2 percent Federal Reserve target by any of the popular measures of inflation.”
  • The Fed is behind the curve in addressing the inflation problem. It kept its foot on the monetary accelerator through 2021, when it should have been moving to neutral and preparing to tighten as needed.”
  • “As a result, the gap between the inflation rate (the problem) and real interest rates (the mechanism for addressing inflation) is as large as it has been since the mid-1970s, when it took nearly a decade to get inflation under control.”

Fox Business: “Smaller US Ports Offer Potential Solution for Supply Chain Delays” (HERE)

  • The supply chain gridlock at major U.S. ports has small shipping hubs working at record pace to ease the crisis. Nationwide, smaller ports have increasingly become viable alternatives to congested coastal docks.”
  • “Across the country, other small ports are angling for some of the additional business overflowing from major U.S. ports.”


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