Although less severe than last year, continued concerns about supply chain disruptions and labor shortages have small business owners concerned about future business conditions, according to a survey released Tuesday by the National Federation of Independent Business. 

The group’s Optimism Index increased 0.4 points in May to 89.4. That is the 17th straight month the index has scored below the 49-year average of 98.

Key points from the survey include:

• 25% of business owners report that inflation was their most important problem.
• 24% of business owners listed labor quality as their most important problem.
• 44% of owners reported job openings that were hard to fill, down one point from April and remaining historically very high.
• 32% of owners plan to raise selling prices, down one point from April
• 21% expect sales to be higher, down two points from April
• 57% expect capital investments in the next six months.
• 19% say they plan to create new jobs in the next three months.
• Of those hiring, 89% reported few or no qualified applicants.
• 41% report they will raise compensation, with 22% saying they plan to raise  compensation in the next three months. Both of are up one point from April

State specific data wasn’t available, but NFIB State Director for Iowa Matt Everson said action taken by Iowa lawmakers during the 2023 legislative session will improve conditions for small business owners in the future.

“Although inflation continues to exacerbate the challenges our Main Street businesses are facing, the Iowa Legislature delivered meaningful relief to Iowa job creators, which will make it easier to do business in our great state,” he said.