ALBANY, N.Y. (NEXSTAR) — The National Federation of Independent Business says that national pressures combined with state taxes and high energy bills are stalling growth on Main Street, New York. Small-business confidence dipped below its 52-year average in September as owners faced worker shortages, rising prices, and higher interest rates on loans, according to reports from the NFIB.


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The NFIB’s Research Center surveyed 5,000 businesses nationally in September and got 411 responses, just an 8.2% response rate. NFIB-New York reflected on those responses while pointing out several problems for New York businesses, including weaker sales, supply chain issues, and the inflated cost of materials.

“Labor challenges, higher costs, steep taxes, and rising interest rates continue to put pressure on New York’s small business owners,” said NFIB NY Director Ashley Ranslow on Thursday. “Even as the majority of small businesses continue to report ‘good’ or ‘excellent’ business health, these pressures are increasing market uncertainty.”

As one New York agricultural business owner wrote in September’s survey report, “Our biggest costs are labor, fuel (energy), and insurance.”


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The NFIB’s Small Business Optimism Index—a monthly measure of owner confidence across 10 economic questions, compared against a 1986 baseline of 100—dropped 0.8 points from 98.7 in August to 97.9 in September, just below the 52-year average of 98. Meanwhile, the Uncertainty Index—counting how often owners “don’t know” or are “uncertain” on their outlook—increased by one point to 90. That’s 22 points above its historical average of 68.

Not finding workers was the No. 1 problem for small businesses for three months straight, rising 3 points from August to 26%, more than double the 12% historical average. Although 51% tried to hire in September—down 5 points from August—45% of owners reported few or no qualified applicants. Seasonally adjusted, 32% of owners couldn’t fill all their job openings.


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Next, 20% of small businesses owners cited inflation as their top problem in September, up 4 points from August and nearly triple the 7% historical average. Higher business expenses are passed onto consumers, who have to spend more at small local businesses. Out of the 411 small business owners surveyed in September, 38% had raised their prices over the prior three months, while 8% cut them, and survey results predict that that tendency will continue for the rest of the year.

Poor sales and taxes tied as the third-biggest problem, with 11% saying one or the other was their No. 1 concern. Taking out business loans also became more expensive since the Federal Reserve raised rates. That pushed the average interest rate on short-term business loans up 0.7 points in September to 8.2%. Only 7% of small business owners called September a good time to expand, down 5 points from August, while 48% said it was a bad time to expand and 31% weren’t sure.