US small-business sentiment hits 11-month high in July
NFIB index rises to highest since August 2023, though labor shortages remain a persistent concern for owners.
U.S. small-business sentiment improved to an 11-month high in July, according to data released by the National Federation of Independent Business (NFIB) on Tuesday. The NFIB Small Business Optimism Index climbed to 93.7 from 91.9 in June, marking the strongest reading since August 2023.
The increase reflects modest gains in several components, including sales expectations and business conditions. However, labor shortages continued to weigh on sentiment, with 22% of owners reporting unfilled job openings as their top business problem. Hiring plans edged higher, but the labor market remains a key constraint for growth.
Inflation pressures also persisted, though they showed signs of easing. Fewer respondents cited rising prices as a critical issue compared to previous months, while supply chain disruptions remained relatively contained. The report underscored the uneven recovery in the small-business sector, where optimism is improving but structural challenges linger.
The NFIB survey, based on responses from 950 small-business owners, is a closely watched indicator of economic sentiment among smaller firms.
Elena covers macroeconomic data and policy across the eurozone, translating industrial output, inflation and growth figures into what they mean for markets.
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