Small and medium-sized businesses have less confidence in the economy; personnel concerns among concerns

May 26, 2023

Small and medium-sized businesses’ confidence in the economy is waning, according to the “Q2 2023 Main Street Index” released this week by Cbiz Inc., a provider of advisory, insurance and financial services. Concerns about the staff were a concern.

The index fell to a reading of 60 points this quarter from 68 points last quarter.

A survey for the report found that 51% of small and medium-sized businesses have a negative or neutral outlook on the economy, and only 49% reported positive or very positive business confidence over the next six months. Furthermore, more than seven in 10 expected a new recession in the economy.

“There is a lagging effect on last year’s interest rate increases,” Anna Rathbun, chief investment officer at CBIZ Investment Advisory Services, said in a press release. “The latest CBIZ Main Street Index shows that the Fed’s actions, along with other factors, are beginning to open more cracks in the foundation of the economy.”

The report said that 27% of those surveyed reported that higher interest rates were affecting the financing needs of their businesses, up from 17% in the first quarter.

Nearly half of the respondents to the Cbiz survey, 48%, cited employee retention as a major concern, up from 25% in the Q1 report. The latest survey also found that 56% are concerned about having enough skilled workers on staff.

The survey for the current report included responses from 753 companies with fewer than 100 employees in 31 industries in the US. It was conducted from April 24 to May 5.