Sharon Miller, president and co-head of Bank of America Business Banking, discusses the costs of small and midsize businesses and the optimism these businesses have as they enter 2026 on “The Claman Countdown.”
The share of small businesses According to a new report from the National Federation of Independent Businesses (NFIB), sales price increases rose to a record high in November as inflationary pressures continued to impact businesses and consumers.
The NFIB’s monthly small business economic trends report for November shows that the net percentage of owners who reported increasing their average sales prices increased 13 points, marking the largest monthly jump in the survey’s history.
That pushed the percentage of owners who said they are increasing average sales prices to a net 34%, which is the highest reading in the survey since March 2023. That’s also well above the monthly average of net 13%.
Increased inflation continues to pose challenges to small businesses, with recent inflation figures showing price growth closer to 3% year over year – well above the Federal Reserve’s target of 2%.
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The NFIB’s small business survey found that the largest monthly increase in price increases came from small business owners. (James Carbone/Newsday RM via Getty Images)
The NFIB found that inflation ranks second among the issues raised by small business owners in identifying the single most important issue they face in running their businesses.
While work quality For 21% of small business owners, problems were the number one issue running their business; 15% cited inflation as the biggest problem.
Job quality fell 6 points from October, while inflation concerns rose 3 points, suggesting this is becoming an increasingly important issue.
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The NFIB found that small businesses are planning price increases over the next three months. (iStock)
As of November 2024, inflation narrowly replaced job quality as the single most important issue facing small businesses, as 20% cited inflation, while 19% cited job quality.
Looking ahead to the next quarter, a net 30% of small businesses indicate that they plan to do this increase prices for the next three months.
Of small business owners who reported higher profits, 51% cited sales volume as a driver of profit growth, while 18% cited usual seasonal changes and 12% cited higher sales prices.
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Federal Reserve Chairman Jerome Powell and central bank policymakers are trying to balance the need to lower inflation with supporting a weakening labor market. (Kent Nishimura/Getty Images)
Of small business owners reporting lower profits, 27% blamed weaker sales, while 16% cited it rising material costsand 12% mentioned labor costs.
Additionally, the NFIB Small Business Optimism Index rose 0.8 points to 99 in November, remaining above the 52-year average of 98. Six of the index’s ten components rose, while three fell and one remained unchanged.
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An increase among small businesses that expected real turnover to be higher was the main contributor to the increase in the Optimism Index. The net percentage of owners expecting higher real sales volumes increased by 9 points compared to October to a net 15%.
