NASHVILLE, Tenn. (RFD News) — Rural businesses gained a more hopeful economic outlook in June, but inflation, labor shortages, and high borrowing costs continue limiting growth. Lower fuel expenses offered some relief for farms, agribusinesses, and small-town employers.
The National Federation of Independent Business says its Small Business Optimism Index rose 2.1 points to 97.4, nearing its long-term average. Expectations for stronger sales and better business conditions improved, while uncertainty remained at historically high levels.
Labor remained a major obstacle. Thirty-two percent of owners reported jobs they could not fill, and a net 11 percent planned additional hiring. Inflation ranked as the top business problem, cited by 21 percent of respondents.
Higher operating costs can pressure rural retailers, farm service companies, equipment dealers, and processors with limited ability to absorb expenses. Capital spending plans improved, but high interest rates continued encouraging caution on expansion and equipment purchases.
Owners expect some price pressure to ease during the next three months. Future sales expectations also improved, but hiring conditions, financing costs, and inflation will remain key measures for rural business activity.
