Rising Inflationary Pressures Squeezing Utah Small Businesses

The latest Zions Bank Small Business Index shows a declining environment for Utah’s small businesses. Rising energy and food prices are hitting small businesses hard. The report says most small businesses are borrowers of operating funds, and expects the Fed to raise interest rates to help stem the inflationary tide. That could spell trouble for many businesses already strapped for operating capital.

Unemployment is rising in Utah as well, up to 3.2% from 3.1% in May. That’s up about 0.5% from one year ago. The U.S. unemployment rate averaged 5.5% in June. However, the average hourly wage rose 0.3% to $18.01 hourly.
That’s a jump of 3.4% in the past year.

The index for June of 2008 was set as 87, down from 88.9 in May. For reference, the report uses conditions in 1997 for a base score of 100.

Download the entire Zions Bank Small Business Index for June here.