In the month of October, inflation remains a top issue small business owners are facing. The Consumer Price Index (CPI) data, released earlier this month, showed the inflation rate is currently sitting at 3.7 percent year over year, at the same level as last month. Core CPI, which excludes the more volatile measurements of food and energy, increased 0.3 percent. Inflation and labor were tied as the top issues small business owners are facing with 43 percent unable to fill open positions. The National Federation of Independent Business (NFIB) monthly Small Business Optimism Index decreased 0.5 points, marking the 21^st straight month below the 48-year average of 98 percent. Inflationary pressures continue to hurt small businesses with a year over year increase in the Producer Price Index of 2.2 percent, the largest increase since rising 2.3 percent in April. Meanwhile, future business outlooks are declining, with a net negative of 41 percent of small business owners expecting better business conditions over the next six months, down six percent from last month. Despite hopes of lessening inflation, Main Street America continues to be weighed down by rising prices while also facing tighter access to credit, as lenders continue to become more selective.

The below October 2023 Small Business Snapshot features numbers and updates to provide more insight into the current small business economy.

MAIN STREET MEASUREMENTS:

CONSUMER PRICE INDEX (INFLATION)

• The prices consumers paid for goods and services increased 0.4 percent in September as compared to August and totaled a 3.7 percent increase when measured over the last 12 months.

PRODUCER PRICE INDEX

• Wholesale prices increased 0.5 percent in September and had an increase of 2.2 percent year over year.

JOB OPENINGS

• At the end of August, businesses were unable to fill 9.6 million jobs, 3.6 million workers quit their jobs, and the number of layoffs and discharges changed little.

UNEMPLOYMENT RATE

• 336,000 jobs were created in September, and the unemployment rate was unchanged at 3.8 percent.

LABOR FORCE PARTICIPATION RATE

• The labor force participation rate remained unchanged at 62.8 percent in September.

UNEMPLOYMENT INSURANCE WEEKLY CLAIMS

• October 7, 2023, the Department of Labor reported that initial unemployment claims were 209,000, unchanged from the previous week’s level.

  • The 4-week moving average of initial claims totaled 206,250, a decrease of 3,000 from the previous week’s average.

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