Modest and midsize companies significantly less confident in the economy staffing issues amongst worries

May well 26, 2023

Modest and midsize businesses’ self-confidence in the economy is on the wane, according to the “Q2 2023 Key Street Index” released this week by Cbiz Inc., a provider of economic, insurance coverage and advisory solutions. Staffing issues had been one particular be concerned.

The index fell to a reading of 60 points this quarter from 68 points in the final quarter.

A survey for the report identified 51% of tiny and midsize companies have a unfavorable or neutral outlook on the economy, and only 49% reported a constructive or pretty constructive business enterprise self-confidence more than the subsequent six months. In addition, extra than seven in ten anticipated a additional downturn in the economy.

“There’s a lagging impact to final year’s interest price hikes,” Anna Rathbun, chief investment officer of CBIZ Investment Advisory Solutions, mentioned in a press release. “The most up-to-date CBIZ Key Street Index shows the Fed’s actions, along with other elements, are beginning to open extra cracks in the foundation of the economy.”

The report mentioned 27% of respondents reported larger interest prices had been impacting the funding wants of their companies, up from 17% in the 1st quarter.

Practically half of respondents to Cbiz’s survey, 48%, listed employee retention as a quit concern, up from 25% in the 1st-quarter report. The most up-to-date survey also identified that 56% are worried about possessing sufficient skilled workers on employees.

The survey for the present report integrated responses from 753 companies with fewer than one hundred personnel in 31 industries across the US. It took location from April 24 to May well five.