Small business owners are increasingly concerned that the current economic conditions could force them to close their businesses, according to a Job Creator’s Network Foundation (JCNF) poll obtained exclusively by the Daily Caller News Foundation.
The survey, which collected responses of 400 small business employers between Sept. 7 and 28, found that 64% of them were concerned that economic conditions could force the closure of their business, the highest amount this year and up from 55% in July, while 35% reported they were not concerned. Of respondents, 48% listed high prices/inflation in their top two concerns, and 31% listed the economy/client spending. (RELATED: EXCLUSIVE POLL: Majority Of Employers Believe Small Business Climate Is Not Getting Better)
“As small businesses continue to navigate the realities of ‘Bidenomics’—notably grappling with high interest rates as the Federal Reserve attempts to rein in ‘Bidenflation’—Main Street is searching for a lifeline,” Elaine Parker, president of the JCNF, told the DCNF.
Inflation increased by 3.7% year-over-year for the second month in a row in September, far above the Federal Reserve’s 2% target, while core inflation, which excludes the volatile categories of energy and food, remained elevated at 4.1% for the year.
Consumer sentiment tumbles for Oct as record 49% of respondents say high prices eroding living standards and inflation expectations skyrocket – Fed has completely lost the expectations fight and has to hike rates again next meeting… pic.twitter.com/tFjeHDCUG1
— E.J. Antoni, Ph.D. (@RealEJAntoni) October 13, 2023
The number of employers concerned about interest rates hurting their businesses spiked in September, rising to 76% compared to 66% in August, according to the poll. The Fed has raised interest rates to a 22-year high, bringing them to a range of 5.25% and 5.50%, after a series of 11 rate hikes that began in March 2022 to combat high inflation.
Employers were slightly more optimistic about hiring in September, with 31% saying they were planning on increasing the number of people they employ in the next three months compared to 26% in August, according to the poll. Only 4% said they would decrease employment over the three-month time period, as opposed to 6% in August, while 65% said they would keep it the same.
The number of jobs added in September to the U.S. economy was 336,000, far above the expectation of 170,000 held by most economists, while the unemployment rate remained the same month-to-month at 3.8%.
The poll has a margin of error of plus or minus 4.9%.
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