according to a recent survey by LendingTree Research.
The report surveyed entrepreneurs across the 50 largest metro areas in April 2022. San Antonio ranked No. 15 in the ratio of business owners feeling the adverse effects of inflation. Other big Texas metros including Dallas, Houston and Austin didn’t even land in the top 20.
What’s more, the number of business owners in San Antonio reporting big price hikes on supplies and services was higher than the Texas average of 78.3%.
“The longer inflation lingers, the more impact it stands to have on business,” LendingTree chief credit analyst Matt Schulz said in a statement. “It may force businesses to adjust their pricing, find a new line of credit, rethink their hiring plans, postpone possible expansion and reconsider other big decisions. Running a business is never easy, but it’s even more challenging in uncertain economic times like these.”
The study exposing the hardships of Alamo City business owners comes as the Federal Reserve hiked interest rates another 75 basis points on Wednesday, bringing them to 3%. Target lending rates haven't been at that level since 2008.
While the Fed’s hike is intended to curb inflation, which rose to 8.3% in August, the higher rates have negative effects on other parts of the economy such as the housing market, where San Antonio is already experiencing a cooling effect.
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