Part 7/11:
Small Business Outlook
On the microeconomic front, the National Federation of Independent Businesses reported a slight decrease in small business optimism, primarily due to rising inventory pressures and labor challenges. Nonetheless, profitability among small firms reached its highest level since December 2021, with a notable 3-point increase in those reporting higher profits.
Labor quality remains the most pressing concern for small business owners, even as their overall health appears resilient. Price pressures persist, with a continued but modest inflationary environment—indicated by Trueflation's measurement of just over 2%.