US small-business sentiment rose in July to an eight-month high amid a broader upswing in optimism about the outlook for the economy.
An index maintained by the National Federation of Independent Business rose by 0.9 point to 91.9, the group said Tuesday. The share of small-business owners expecting better business conditions over the next six months rose to the highest level since August 2021.
The results from NFIB’s monthly survey mirror the improvement in various measures of US consumer sentiment in recent months, as well as rising confidence on Wall Street that an economic downturn can be averted as inflation decelerates and hiring remains steady.
A net 25% of small-business owners reported higher average selling prices, the smallest share since early 2021. Some 42% said they had job openings that were hard to fill, unchanged from the prior month’s reading.
“Inflation has eased slightly on Main Street, but difficulty hiring remains a top business concern,” NFIB Chief Economist Bill Dunkelberg said in a statement.
While a greater share of respondents reported plans to increase employment, capital outlays and inventories in July, fewer reported higher profits. Expectations for credit conditions were unchanged.
