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

Could 26, 2023

Tiny and midsize businesses’ self-assurance in the economy is on the wane, according to the “Q2 2023 Principal Street Index” released this week by Cbiz Inc., a provider of monetary, insurance coverage and advisory solutions. Staffing issues had been 1 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 modest and midsize companies have a damaging or neutral outlook on the economy, and only 49% reported a good or pretty good small business self-assurance more than the subsequent six months. In addition, additional 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 recent CBIZ Principal Street Index shows the Fed’s actions, along with other components, are beginning to open additional cracks in the foundation of the economy.”

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

Almost 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 recent survey also identified that 56% are worried about obtaining sufficient skilled workers on employees.

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