The National Federation of Independent Business (NFIB) Small Business Optimism Index remained steady in June, edging down 0.2 of a point to 98.6, slightly above the 51-year average of 98. The Uncertainty Index decreased by five points from May to 89. Nineteen percent of small business owners reported taxes as their single most important problem, up one point from May and ranking as the top problem again.
Key findings include:
- A net negative 5 percent (seasonally adjusted) of owners viewed current inventory stocks as “too low” in June, down six points from May.
- The net percent of owners expecting better business conditions fell three points from May to a net 22 percent (seasonally adjusted).
- The net percent of owners expecting higher real sales volumes fell three points from May to a net 7 percent (seasonally adjusted).
- The percent of small business owners reporting labor quality as the single most important problem for business remained at 16 percent, unchanged from May.
- Eleven percent of owners reported that inflation was their single most important problem in operating their business (higher input costs.
- The data on overall health of respondents’ business showed substantial deterioration, with declines in the percentages reporting their business was in excellent or good health.
As reported in NFIB’s monthly jobs report, a seasonally adjusted 36 percent of all small business owners reported job openings they could not fill in June, up two points from May. Of the 58 percent of owners hiring or trying to hire in June, 86 percent reported few or no qualified applicants for the positions they were trying to fill.
Nineteen percent of small business owners reported taxes as their single most important problem, up one point from May and ranking as the top problem. The percent of small business owners reporting government regulations and red tape as their single most important problem remained at 9 percent for the third consecutive month.