A new inflation reading indicates the small business tipping point has been acquired
Key takeaways:
- According to the latest CNBC, inflation has grabbed hold of Main Street, with an increasing number of small business proprietors saying it will not concede over the following six months and increasing costs to offset gains in the prices of supplies, according to the latest CNBC|SurveyMonkey Small Business Survey.
- President Biden's support rating is submerged. Though the small business community skews conservative and the vast majority of liberals polled continue to help Biden, approval among Democrats beat down this quarter, and trust in the Federal Reserve's ability to manage inflation is low.
- The overall CNBC|SurveyMonkey Small Business Confidence Index score flows near all-time lows, though it stayed intact from Q4 2021.
Small businesses' tipping point earned:
The newest Consumer Price Index reading, the highest in four decades, isn't the only indication that inflation is rising rather than giving up its hold over the U.S. economy in 2022. An increasing number of American small businesses state they are now giving on higher prices to consumers or soon will be forced to create that judgment.
While the 74% of small business owners who say they are encountering increasing costs of supplies are virtually unchanged from Q4 2021, according to a new CNBC/SurveyMonkey Small Business Survey, the number of businesses giving on costs to clients has increased to 47% in the first quarter, up from 39% in Q4 2021.
And another 32% predict they will have to raise prices soon if inflation continues. Sticky inflation is their anticipation. Over eighty percent of small business proprietors wish inflation to still be an issue six months from now (55% say that is "very likely"), according to the CNBC|SurveyMonkey data.
The Main Street worries about inflation are related to the small business perspective on the supply chain, with 75% stating these problems are possible to be a situation six months from now. And there is a lack of confidence in policymakers, with 71% of small business owners not sure of the Federal Reserve's ability to manage inflation.