According to the National Association of Manufacturers’ (NAM) Monday Economic Report for this week, the Producer Price Index (PPI) increased by 1.7% year over year in August, a significant decline from the 2.1% increase year over year in July.  The PPI, a measure of inflation and cost of goods for producers, rose 0.2% over the month of August, following a flat reading in July.  This leading economic indicator should directly affect retail pricing of consumer goods. The Consumer Price Index (CPI), also released last week from the U.S. Bureau of Labor Statistics, increased 0.2% on a seasonally adjusted basis, the same increase as in July. 

The August 2024 Small Business Optimism Index, according to the NFIB Research Foundation, fell by 2.5 points in August to 91.2, erasing all of July’s gain. Twenty-four percent of owners reported inflation as their single most important problem in operating their businesses. Small business owners are also concerned about job openings, with 90% of the owners trying to hire in August reporting that they had few or no qualified applications to fill the positions.