Despite a rise in confidence among U.S. small-business owners in July, the overall sentiment remains below the long-term average due to lingering concerns over high inflation and a tight labor market.
According to the National Federation of Independent Business (NFIB), the small-business optimism index improved to 91.9 in July, up from 91.0 in June. However, this is significantly below the index's 49-year average of 98.
The NFIB survey, which provides a monthly snapshot of small businesses in the U.S., reveals that inflation remains the primary concern for many small-business owners, despite a slight decrease in price rises in June. Additionally, there is an ongoing struggle to fill job openings.
Bill Dunkelberg, NFIB's chief economist, stated, "Inflation has eased slightly on Main Street, but difficulty hiring remains a top business concern."
The survey also showed that while a significant percentage of owners expect an improvement in business conditions over the next six months, the reading remains low compared to historical averages.
The NFIB highlights that small businesses are eager to hire and generate revenue through solid consumer spending. However, with owners' views on future sales growth and business conditions remaining dismal, there is a sense of urgency for immediate action.
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