SEPTEMBER 2024 INDUSTRY NEWS AND TRENDS
Despite planned rate cuts, inflation hits small businesses hard
Small business optimism dipped in August as inflation remained the top concern, according to the NFIB (National Federation of Independent Business). The NFIB reported that small businesses faced challenges due to rising costs and weaker sales, leading to a decline in profit expectations. This comes as the Federal Reserve signals a plan to cut interest rates to address inflation and support employment. However, experts predict a cautious approach to rate cuts, with a gradual reduction over the next few years.
Americans are tentatively optimistic about the economic future
The Gallup Economic Confidence Index shows that US economic confidence improved slightly in August, driven by increased optimism about the economy’s future. However, views on current conditions remain negative due to inflation and job market concerns. Political affiliation also had an impact: confidence levels among Democrats improved, while Republicans remained deeply negative. Economic issues, particularly inflation, are top concerns for Americans
Business owners are delaying hiring amid economic uncertainty
US employers are hesitant to hire due to economic uncertainty stemming from the upcoming presidential election and potential interest rate cuts. Businesses are cautious about hiring decisions as they sift through differing economic policies proposed by candidates and the Federal Reserve’s anticipated actions. While the job market shows signs of cooling, pent-up hiring potential exists, depending on election outcomes and interest rate adjustments. Experts suggest that businesses may delay hiring until there’s more clarity on these fronts.
