US small business confidence near lowest level in almost a decade
By Alexander Bueso
Date: Tuesday 12 Jul 2022
(Sharecast News) - A closely-followed gauge of small businesses' optimism in the US plumbed its lowest level since January 2013 in June, dragged lower by a fall in expectations for short-term business conditions and sales.
Nevertheless, the survey findings also revealed continued tightness in the the jobs market.
The National Federation of Independent Businesses' Small Business Optimism Index fell from a reading of 93.1 for May to 89.5 (consensus: 93.0).
"Declines in the net percent expecting better business conditions have always preceded downturns in economic activity," NFIB chief economist, Bill Dunkelberg, said.
"At a net minus 61%, the lowest in 48 years, it is strongly indicating bad times for the economy to come."
On the flip-side, despite half of business owners looking to fill their existing job vacancies, 94% said they had found few or no applicants.
In parallel, 48% of owners said they were raising salaries, although that was two percentage points less than the record reached in January.
"Despite a net 19% of owners still planning on hiring in the next three months, ongoing difficulties filling job openings may foreshadow a more challenging recovery in labor supply in the months ahead," said Mahir Rasheed, US economist at Oxford Economics.
In parallel, the proportion of owner raising selling prices edged lower from 72% in May to 69% this time around.
Inflation was still the top concern for businesses last month, according to 34% of those surveyed - the most since 1980.
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