New York small business confidence dips below 52-year average

Small business confidence in New York fell below its 52-year average in September as owners grappled with labor shortages, rising costs, and higher interest rates, according to the National Federation of Independent Business. The NFIB’s Small Business Optimism Index dropped 0.8 points from 98.7 in August to 97.9 in September, while the Uncertainty Index rose to 90, significantly above its historical average.

Labor challenges remained the top concern for three consecutive months, with 26% of owners citing difficulty finding workers, more than double the historical norm. Inflation also emerged as a major issue, with 20% of owners identifying it as their primary problem, nearly triple the historical average. Consequently, 38% of surveyed businesses raised prices over the prior three months, passing higher expenses onto consumers.

The average interest rate on short-term business loans increased by 0.7 points in September to 8.2% following Federal Reserve rate hikes. Only 7% of small business owners described September as a good time to expand, down from 12% in August, while 48% said it was a bad time to grow.

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