The U.S. Census has been deploying weekly surveys to small businesses across the country since 2020. The Small Business Pulse Survey intends to measure the effects of the pandemic and other recent events. The share of these businesses experiencing notable price increases has grown considerably, according to data from the U.S. Census. And many are experiencing supply delays on goods purchased domestically and abroad.
States and metros where small-business inflation is worst
The week of Aug. 16, 2021, the agency began asking about prices small businesses were paying for goods and services, costs that would no doubt be passed on to consumers in large part. Then, 29% said they had seen large price increases since March 2020. As of April 2022, the last survey conducted at the time of this analysis, about 41% of small businesses said they were experiencing a large increase in prices over the past six months. And about 79% were experiencing at least a moderate increase. But some locations were experiencing these hikes at an even greater rate.
States where small businesses are most likely to say they’ve seen a moderate or large increase in prices over the previous half-year include: Nebraska (88%), Wisconsin (87%), Arkansas (86%) and South Dakota (86%). In all, 24 states had such price increases in more than 80% of small businesses.
States with the highest share of small businesses reporting moderate or large increases in the prices they pay for goods and services.
Source: U.S. Census Small Business Pulse Survey, week of April 11-17, 2022.
Closely linked to price increases, supply chain disruptions mean sellers can’t get the goods they need in a timely manner, whether to sell them or use them in production. Across the country, 45% of small business owners say they’ve experienced domestic supplier delays in the past week, and 19% have experienced international delays.
Credit: NerdWallet. Read the full article here