June 21, 2023
C-Suite Wednesday – Small Businesses are Spending More Money in 2023
In 2023, the NFIB found that small business spending has been higher compared to their average spending in 2022. When small businesses made capital outlays in the last few months, they have also been spending a greater amount compared to a year ago. This is what the May Small Business Economic Trends report had to say about small business capital spending:
- A quarter of small business owners plan to make a capital expenditure in the next three to six months, up 6% from the reading in April.
- 57% of small business owners made a capital expenditure in the last six months.
- Of those who reported making a capital expenditure in the last six months, 17% reported making an expenditure of over $100,000, 15% made an expenditure of $10,000 to $49,999, and 11% made an expenditure of $50,000 to $99,999.
- Small businesses most frequently purchased or leased equipment (38%) and vehicles (24%).
- Inventory increases saw a positive increase of 5%, but inventory increases still had a negative reading in May (-2%).
- Also an increase from the April results, the number of small business owners planning inventory investments in the upcoming months rose 3 points.