US small business optimism at six-month high, but still subdued

9th Jul 2024 12:02

(Sharecast News) - Small business optimism in the United States rose to its highest level in six months in June, though still remains below its long-term average.

According to the National Federal of Independent Business, the monthly optimism gauge increase to a reading of 91.5 last month, up from 90.5 in May.

This was ahead of the 89.5 consensus forecast and the highest reading since December, but is still regarded as a fairly pessimistic outlook from small businesses, according to the NFIB, coming in below the historical average of 98 for the 30th straight month.

Inflation continues to be the top issue facing small businesses, with 21% of company owners citing it as the single most important problem in operating their business, and 22% planning to raise compensation over the next three months.

"Main Street remains pessimistic about the economy for the balance of the year," said NFIB chief economist Bill Dunkelberg.

"Increasing compensation costs has led to higher prices all around. Meanwhile, no relief from inflation is in sight for small business owners as they prepare for the uncertain months ahead."

Meanwhile, a net 37% of owners said they had job openings that they could not fill in June, and of the 60% of owners hiring or trying to hire, some 85% reported few or no qualified candidates.