U.S. small business optimism index rises in July
Source: FxWire Pro - Commentary / 14 Aug 2018 12:42:59 America/New_York
The U.S. small business optimism index rises in July to the second highest reading in the survey’s history. The NFIB’s small business optimism index rose 0.7 points to 107.9 in the month. The headline print came in just 0.1 point lower than the July 1983 record and surpassed the consensus expectations for a pullback to 106.8.
The majority of the subcomponents rose in the month. Expected credit conditions and earnings were stable, but both at high levels. The only subcomponents to fall were plans to increase inventory and current inventory levels.
Labor market indicators came in positive. Plans to increase employment were up 3 points to 23 percent, even in the face of a rising number of businesses reporting difficulties in filling positions. %9 percent of businesses recorded hiring or trying to hire in the month, but noted that availability of labor remained a bottleneck. Meanwhile, plans to raise compensation rose 1 point to a net 22 percent, a historically solid reading.
A net 8 percent of owners recorded higher nominal sales – down two points from the previous month, but still among the surveys top numbers and the eight consecutive month of recorded sales gains. Expectations of higher real sales volume in the future rose 3 points to a net 29 percent of owners – another strong reading.
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