The NFIB Small Business Optimism Index rose 0.7 points in June to 94.5. Four of the 10 Index components posted a gain, three declined and three were unchanged. The biggest gain was in expected business conditions, which rose four points.
"Small-business optimism did not go down, which is good, but small businesses are in maintenance mode experiencing little growth," said Bill Dunkelberg, NFIB chief economist. "Uncertainty is high, expectations for better business conditions are low, and future business investments look weak. Our data indicate that there will be no surge from the small-business sector anytime soon and prospects for economic growth are cloudy at best."
Fifty-six percent reported hiring or trying to hire (unchanged), but 48 percent reported few or no qualified applicants for the positions they were trying to fill.
The net percent of all owners (seasonally adjusted) reporting higher nominal sales in the past three months compared to the prior three months rose four percentage points to a net negative 4 percent, an improvement, but still negative. Eleven percent cited weak sales as their top business problem, down three points from May.
Fifty-seven percent reported capital outlays, down one point from May. The percent of owners planning capital outlays in the next three to six months rose three points to 26 percent, the third highest reading in this expansion.
Inflationary pressures remain dormant on Main Street. Twelve percent of owners reported reducing their average selling prices in the past three months (down one point and down six points from March), and 16 percent reported price increases (down one point).
A seasonally adjusted net 22 percent of owners reported raising worker compensation, down four points. The net percent planning to increase compensation fell one point to a net 14 percent.
