CHARLESTON — West Virginia is not immune to soaring inflation, as the NFIB Small Business Optimism Index lays out in its latest report.
In December, the NFIB Small Business Optimism Index rose by 1.3 points to 91.9, marking the 24th consecutive month below the 50-year average of 98.
NFIB West Virginia State Director Gil White said inflation is causing problems for the state.
"West Virginia's small businesses are definitely feeling the impact of rising prices," White said to The West Virginia Record. "Inflation is driving up the cost of everything from raw materials to routine maintenance, and it's lessening the buying power of West Virginia families."
White said inflation is an issue everywhere.
"Inflation is a global issue, but we're hoping the legislature can do something to ease the financial pressure on Main Street businesses," White said.
The Small Business Optimism Index found that 23% of small business owners identified inflation as their primary concern, surpassing labor quality.
The report also found that small business owners anticipating improved business conditions in the next six months increased by six points from November to a net negative 36%. This number is a significant improvement from last June's net negative 61%.
The report also found that 29% of owners plan to raise compensation in the next three months, down one point from November and the net percent of owners expecting higher real sales volumes increased by four points from November to a net negative 4%, seasonally adjusted, the highest reading since January 2022.
NFIB also found that 40% of owners reported unfilled job openings, with a net 16% planning to create new jobs in the next three months and 58% of owners reported capital outlays in the next six months, with 24% planning capital outlays in the coming months.
A net negative 11% of owners reported higher nominal sales in the past three months, which is a six-point improvement from November and the net percent of owners raising average selling prices remained unchanged at a net 25%, with a net 32% planning price hikes in the next three months, according to the report.
Reports of inventory gains increased by one point to a net negative 2%, while a net negative 5% of owners viewed current inventory stocks as "too low" in December, according to the report.
The report also found that 3% of owners reported that all their borrowing needs were not satisfied, and a net 8% reported their last loan was harder to get than in previous attempts.
The December report surveyed business owners to identify the "single most important problem" facing their small business and found that 23% said inflation, followed by quality of labor at 20% and taxes at 17%.
The report noted that the Optimism Index rose by 1.3 points to reach 91.9, which is the 24th consecutive month with a value below the 50-year average of 98. December 2021 was the last time the Index reached or exceeded the average. Throughout the past year, the Index remained around the "90" level. Among the 10 index components, five showed an increase, three decreased, and two remained unchanged.