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Consumer Inflation & Federal Reserve Report Card: Small Businesses Have Concerns About the Economy

According to the Bureau of Labor Statistics, the Consumer Price Index, which measures consumer inflation, rebounded in July – rising .2% from June and 3.2% year-over-year. That’s up from 3.0% year-over-year in June, and it’s the first increase in 12 months.

This resurgence has stirred concern among small businesses, who fear the potential recurrence of inflationary trends.

A recent PublicSq. and RedBalloon survey among over 50,000 small businesses found strongly held opinions about the performance of the Federal Reserve and the Biden Administration, and on the future economic outlook.

Key Insights:

  • A notable 86% of small business owners express dissatisfaction with the Federal Reserve's handling of interest rates and inflation, categorizing it as poor or even harmful.

  • Interest rates and access to capital raise concerns for 74% of surveyed businesses, with half ranking it as a top concern.

  • Approximately 60% of respondents foresee a looming major recession, with an additional 20% anticipating a minor recession.

  • Ratings for the Biden Administration's efforts in promoting small business growth are far from favorable, with 87% labeling it as "Harmful" and another 11% as "Poor."

As RedBalloon CEO, Andrew Crapuchettes, said, "Small businesses have borne the brunt of the Federal Reserve's actions, and these business owners have suffered because of the Fed's fumbling on inflation."

The survey results also underline the stark disparity between government policies and the needs of small businesses. Michael Seifert, CEO of PublicSq., emphasized this saying, "The biggest takeaway for me from this survey is just how out of touch government policies are with the needs of small businesses."

Conducted from July 25-28, 2023, the Freedom Economy Index survey, a partnered effort between PublicSq. and RedBalloon, garnered insights from 2,100 respondents among a sample of over 50,000 businesses. With a 2% margin of error at a 95% confidence level, this survey provides an insightful snapshot of small business perspectives in a rapidly evolving economic landscape.

See the full results of the Freedom Economy Index here

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1 Comment

Jay Quincy Allen
Jay Quincy Allen
Aug 10, 2023

Seems politically skewed.

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