CBIZ, Inc. (NYSE: CBZ), a leading provider of financial, insurance and advisory services, has released the results of its Q1 2023 Main Street Index, taking the pulse of and gauging the outlook for small and mid-sized businesses (SMBs). The results showed companies are preparing for the possibility of recession but remain optimistic about their near-term future. This includes 81% of small to mid-sized businesses that project revenue will remain the same or increase by as much as 10% over the next few months.
The CBIZ Business Confidence Study, a weighted average of responses to the index’s business confidence-focused questions, rose slightly to just under 68 points. Ongoing action by the Federal Reserve to raise interest rates and lower inflation was also apparent in the index, as 78% of companies incurred a significant or modest increase in the cost of goods and resources this quarter, down from 85% in Q4 of 2022. Despite the positive signs for SMBs, 72% surveyed expect a downturn in the economy in the near future, while 61% cite a recession as their top concern. Other top concerns include hiring and maintaining an adequate number of skilled workers (56%) and rising interest rates (36%).
“Our data reveals the resilience and adaptability that small businesses have shown in this uncertain economic environment,” said Anna Rathbun, chief investment officer of CBIZ Investment Advisory Services. “Despite potential recessionary indicators and rising interest rates, most companies are managing to withstand these headwinds and are prepared for whatever lies ahead. It’s a testament to the hard work and creativity these business owners are investing to find solutions for success.”
Based on a survey conducted between Jan. 10 and Feb. 1, the index analyzed responses from more than 700 businesses with fewer than 100 employees in 27 industries across the U.S.* The index assesses a range of timely trends, including business sentiment, staffing needs, areas of growth and decline, and adapting to a changing workplace.
The data was evaluated from an overall perspective, as well as based on company size, region and industry. An interactive infographic with the results is available on the CBIZ website. Key findings include:
*Note: Not all those surveyed in the CBIZ Main Street Index are clients of CBIZ.
About CBIZ
CBIZ, Inc. provides professional business services that help clients better manage their finances and employees. CBIZ provides its clients with financial services, including accounting, tax, financial advisory, government health care consulting, risk advisory, real estate consulting and valuation services. Employee services include employee benefits consulting, property and casualty insurance, retirement plan consulting, payroll, life insurance, HR consulting and executive recruitment. As one of the largest accounting, insurance brokerage and valuation companies in the United States, the Company’s services are provided through more than 120 Company offices in 33 states. For more information, visit www.cbiz.com.
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Rocco Aloe
Gregory FCA for CBIZ, Inc.
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