By Steve Wilson | The Center Square
A survey by Florida’s small business advocacy group says owners retained nearly the same level of optimism in June as in May.
The monthly Florida National Federation of Independent Businesses Optimism Index edged down 0.2 of a point to 98.6, which is slightly above the 51-year average of 98.
The biggest driver of the slight downward trend was owners reporting excess inventories.
A net negative 5% (seasonally adjusted) number of business owners listed their inventory stocks as too low in June, down six points from May. Twelve percent of respondents said their inventories were too high compared to 7% in May.
More small business owners reported taxes as their single most important problem, up one point from May and again ranking as their top problem.
“Florida’s small business owners are feeling more optimistic about their business conditions, especially after the Florida Legislature finally eliminated the business rent tax,” NFIB Florida Executive Director Bill Herrle said. “The small business community will continue to hire and invest in their employees to further strengthen Florida’s economy.”
Another area of slightly slipping optimism was the expectation of better business conditions, going from 25% to 22%.
The number of small business owners expecting higher sales volumes fell three points from May’s numbers to 7% and 21% of them are planning capital outlays in June, down one point from the month prior.
The number of respondents saying that labor quality is their most important problem remained at 16%, while 11% say inflation is the biggest obstacle to running their business.
When asked to rate the health of their business, only 8% said excellent (down six points from May’s survey); 49% reported good (down six points). The number reporting their business condition as fair was up seven points to 35%, while the number reporting poor were up three points to 7%.
Business owners reporting poor sales were up to 10%, up one point after remaining constant for the past five months.
Business owners also listed labor costs as their most important issue in increasing numbers, up one point to 10%.
Thirty six percent of respondents said there were job openings they couldn’t fill, up two points from May.