My column in Sunday’s Tennessean outlined some basic steps to help entrepreneurs weather the current economic storm.
The NFIB Index of Small Business Optimism rose 1.9 points in April to 91.5 (1986=100). Half of the gain was due to an improved outlook for business conditions 6 months out, and a quarter was from improved earnings trends. Improved earnings during a slowdown seems to indicate that business owners saw this soft economy coming and took steps to cut costs.
However, the net percent of owners reporting higher average selling prices rose again this month. And the percent of owners citing inflation as their No. 1 problem was up to the highest reading since 1982. The number of those planning to raise prices also rose significantly.
Inflation is starting to hit main street.