Q3 Health Check for U.S. Small Businesses

Shortgo Posted On November 22, 2024

Drumroll, please! In partnership with MetLife, the U.S. Chamber of Commerce has released their much anticipated Q3 Small Business Index with insights on the 2024 election and the economy. Be sure to check out why small business owners’ interest in the election has gained intensity over the past four years. Here are some of the highlights from this study:

New data shows capital spending for small businesses slowly trending upward and Main Street employers are bullish on future sales.
Inflation remains front and center on small businesses’ radar and is a cold blanket on plans for expansion and reinvestment made possible through increased profits.
Labor quality continues to be small employers’ second-place concern (behind inflation) even as wage hikes level off.

By the numbers:

-20% of small business owners reported higher sales in the past 3 months (3 points lower than September and the lowest reading in 4 years) and the percentage expecting higher sales rose 5 points to reach -4% (highest level this year).
35% of small businesses reported job openings they could not fill (up 1 point from September).
31% of small business owners raised compensation in October (down 1 point from September and lowest level in 3 years).
23% of small business owners ranked inflation as their top concern (unchanged from September and still the top cited problem) and 20% said that labor quality is their top concern (3 points higher than September).
21% of small businesses raised their prices in August (1 point lower than September) and 26% are planning on raising prices in the next 3 months (1 point higher than September).
54% of small business owners reported capital outlays in the last 6 months (up 3 points from September) and 22% are planning capital purchases in the next 3 months (up 3 points from September).
-6% of small business owners expect better credit conditions in the next 3 months (2 points higher than September).
6% of small business owners believe now is a good time to expand (2 points higher than September).
64% of small business owners are not interested in a loan (2 points higher than September) and 25% report borrowing on a regular basis (down 1 point from September).
3% of small business owners reported that financing was their top problem in October (down 1 point from September).