Since 1981, the largest number of small businesses say that high inflation is their chief concern and many are increasing prices to offset rising costs.
The National Federation of Independent Business said on Tuesday that optimism among small businesses fell to a one-year low in February.
The optimism index of the lobbying group dropped by 1.4 points to 95.7. The index had topped 102 last summer.
Inflation continues to be a problem on Main Street, leading more owners to raise selling prices in February, NFIB chief economist Bill Dunkelberg said.
There are problems with supply chain disruptions and labor shortages, leading to lower earnings and sales for many. The highest reading since the third quarter of 1981 was in the 1 problem.
The U.S. inflation rate was 7.5% in the 12 months ended in January.
Inflation was extremely high 41 years ago, climbing to as high as 11%.
Small businesses are passing on price increases to their customers with their own costs rising.
A net 68% of owners said they were increasing prices, the highest reading in the history of the 48 year-old survey.
Small businesses probably can't expect much relief soon, either.
The Russian invasion of Ukraine has resulted in the cost of oil CL. Wheat W 00, and other commodities went up. The price increases are expected to keep inflation high through the spring.
The survey showed that small firms don't expect much improvement soon. The percentage of those who think business will be better six months from now has fallen by a few points to a net negative 35%.