(Bloomberg) — US small-business optimism edged lower in August amid weaker sales and concerns about the economic outlook, while more firms increased prices.
(Bloomberg) — US small-business optimism edged lower in August amid weaker sales and concerns about the economic outlook, while more firms increased prices.
The National Federation of Independent Business’ index decreased by 0.6 point to 91.3 last month, the group said Tuesday. The net share of owners reporting higher nominal sales in the past three months fell to a three-year low of minus 14%. Future sales expectations also worsened.
The net share of firms expecting the economy to improve fell 7 percentage points to minus 37%.
The NFIB report also showed a net 27% of owners raised selling prices, up from 25% in July and the first increase in nine months. Some 23% of owners cited inflation as their single most important problem — a slight pickup from the prior month.
Meanwhile, the share of US small businesses with unfilled positions dropped to the lowest level since February 2021. While fewer firms boosted compensation, 26% indicated plans to raise compensation in the next three months, the largest share this year.
Read more: Share of US Small Firms With Job Openings Is Smallest Since 2021
The portion of firms planning capital outlays fell to a four-month low, though more small-business owners reported that all of their credit needs were met.
“With small business owners’ views about future sales growth and business conditions discouraging, owners want to hire and make money now from strong consumer spending,” Bill Dunkelberg, NFIB’s chief economist, said in a statement. “Inflation and the worker shortage continue to be the biggest obstacles for Main Street.”
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