![]() ![]() The share of small business owners reporting that inflation was their single most important problem dipped one point to 23%, and was 14 points lower than last July's peak, which was the highest reading since the fourth quarter of 1979.Ībout 33% of owners reported raising average selling prices, down 4 points. The government reported last week that there were 1.6 job openings for every unemployed person in March. Thirty-seven percent of the owners had vacancies for skilled workers, up three points from March. ![]() The vacancies were concentrated in construction, despite higher mortgage rates, and transportation. ![]() central bank has signaled it may pause its fastest monetary policy tightening campaign since the 1980s, the economy has yet to feel the full effects of the cumulative 500 basis points of hikes in the policy rate since March 2022.įorty-five percent of owners reported job openings that they could not fill, up 2 points from March. A fight over raising the federal government's borrowing cap is also helping to cloud the economy. Higher interest rates tied to the Federal Reserve's battle to tame inflation combined with tighter credit conditions following recent financial market stress are stoking fears of a recession this year. A net negative 19% expected higher inflation-adjusted sales, down four points from March. The share of owners expecting better business conditions over the next six months fell two points to a net negative 49%. It was the 16th straight month that the index remained below the 49-year average of 98. The National Federation of Independent Business (NFIB) said its Small Business Optimism Index dropped 1.1 points to 89.0 last month. ![]() small business confidence fell in April on worries about the near-term economic outlook and persistent worker shortages, according to a survey released on Tuesday that also indicated inflation was easing. The net percentage of owners reporting inventory increases went up slightly, but inventory levels remained surprisingly low, the NFIB said.U.S. Labor market remains weak, according to respondents, but there are signs of potential strengthening in the near term. Hiring plans increased eight points to a net 16%. The percentage of owners thinking it's a good time to expand improved eight points to 13%. "Optimism about future conditions improved and small-business owners indicate they expect the recession to be short-lived," the NFIB said. Outlook for general business conditions over the next six months improved five points to a net 39%. Owners are anticipating improving sales as the economy continues to reopen, with real sales expectations in next three months increasing 37 points to a net 13%. June's results, based on 670 companies polled across the country, saw increases in eight of the 10 index components compared with May. "We're starting to see positive signs of increased consumer spending, but there is still much work to be done to get back to pre-crisis levels," NFIB's chief economist Bill Dunkelberg said in prepared remarks.ĭespite the strong gains registered in May and June, the index is still below February's pre-pandemic level of 104.5. Economists look to the report for a read on domestic demand and to extrapolate hiring and wage trends in the broader economy. The NFIB is a monthly snapshot of small businesses in the U.S., which account for nearly half of private sector jobs. ![]()
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