A significant majority of smaller business owners consider inflation a top concern, a newly published report by Bank of America reveals.
The Bank of America recently released its 2022 Small Business Owner Report, which also revealed that most entrepreneurs expect business expansion even with the uptick in costs.
Sharon Miller, Bank of America’s head of Specialty Banking and Lending, spoke on Fox Business's “Mornings with Maria” on Wednesday, noting that “consumer spending” fuels businesses. She also added that pent-up demand exists in the economy despite inflation being a concern, so businesses continue “to invest in themselves and grow.”
She then noted Bank of America data, revealing that April’s consumer spending went up by 25% compared to the same period last year.
.@BankofAmerica's @_sharonmiller says a vast majority of small business owners say inflation is a top concern, "but there is some pent-up demand out there in the economy."@dagenmcdowell @FoxBusiness @MariaBartiromo @BofA_News pic.twitter.com/ervssbM6aU
— Mornings with Maria (@MorningsMaria) May 4, 2022
The survey had over 1,000 business owners located across the country as respondents and was conducted in March and April. It found that these entrepreneurs have been navigating operational challenges, including the surge in prices and the loss of customers. Despite these hurdles, however, their business outlook remained strong, with 64% of the business owners surveyed expecting an increase in their revenue in the next year.
Bank of America Report Reveals Main Issues Business Owners Face
The report also found that 88% of entrepreneurs believe that inflation currently impacts their business. Thirty-three percent of these business owners feel confident that the U.S. economy will improve, which is less than 50% from last year.
In March, inflation rushed towards a new four-decade record while price hikes became widespread. The prices in the energy sector surged by 11% in March compared to the previous month, while it’s up by 32% compared to last year.
The Labor Department revealed last month that the consumer price index went up by 8.5$ in March from a year ago, which is the fastest increase it has been since December 1981, when inflation went up to 8.9%. Prices rose 1.2% in the single-month period from February, the biggest month-to-month increase since 2005.
The data concerning inflation in April will be published next week.
The inflation data for April will be released next week.
The Bank of America’s report also revealed that 78% of business owners say problems in the supply chain also affect their business.
According to Miller, despite a supply chain crisis happening, signs also exist, pointing to the notion “that that is starting to break free a bit.”
She also noted that the current outlook “is actually positive” when she asked entrepreneurs about how they feel regarding revenue prospects in the next year.
“So we are seeing signs of optimism,” Miller revealed.
“I wouldn’t say that everything is resolved, but we are coming out of the pandemic,” she went on to say, stressing that “things are beginning to flow.”