NFIB June US Small Business Index Rises, Highest Since February

The National Federation of Independent Business's monthly Small Business Optimism Index rose to a reading of 97.4 in June from 95.3 in May, the highest reading since February, but was below the 98.6 reading a year earlier. "Current economic conditions present small business owners with both encouraging developments and ongoing challenges," said NFIB Chief Economist Bill Dunkelberg. "Lower fuel costs provide welcome relief for businesses as well as consumers, with firms anticipating improved operating conditions over the next six months." However, elevated interest rates and "modest economic growth" has made owners more cautious in their hiring and spending decisions, Dunkelberg added. There were monthly increases in seven of the 10 component measures, compared with three decreases. The largest increase was seen in the measure of economic expectations, which rose by 10 percentage points to a net 13%. A net positive reading indicates that more respondents expect an increase than those expecting a decrease, and vice versa for a net negative reading. There were also gains in real sales expectations (to a net 9%), capital outlays plans (to a net 20%), current inventory levels.