A gauge of the small business sector is at a record high, The U.S. Chamber of Commerce and MetLife reported Wednesday, releasing results of their Small Business Index for the third quarter.
At 72.0, the Small Business Index is up from both the second quarter (65.2) and a year earlier (71.2), reflecting improvement in several key areas:
- Their view of the U.S. economy brightened.
- Their assessment of their local economies improved.
- More say they’re very comfortable with their cash flow.
- More expect their revenues to increase in the next year.
- 61% rate their current access to capital as good (61%), up seven percentage points compared to Q2 2022 (54%).
Additionally, seven in ten (72%) say their business is in good health this quarter, up from 69% last quarter and 66% a year ago.
“This quarter’s Index reflects a resilient small business community that’s cautiously optimistic about the economy,” Chamber Vice President of Small Business Policy Tom Sullivan said in a press release announcing the results.
Conditions improved in each of the four regions studied. Small businesses in the South Region posted the highest index. While small businesses in the West recorded the lowest index, the index for that region enjoyed the greatest increase from the previous quarter:
Region:
- South: 72.9
- Midwest: 72.2
- Northeast: 71.9
- West: 70.8
Inflation was most often cited as the biggest concern among small business owners, topping the list for the 15th straight quarter:
- Inflation: 46%
- Revenue: 26%
- Supply chain issues: 15%
- Affording employee benefits: 15%
- Attracting talent: 14%
Nonetheless, concerns about inflation were slightly lower than in the second quarter and down from the record high set in the first quarter of this year.