U.S. small-business confidence rose to its highest level in nearly 2.5 years in July, indicating that concerns about a recession may have been exaggerated.
The National Federation of Independent Business (NFIB) reported that its Small Business Optimism Index increased by 2.2 points to 93.7, the highest since February 2022.
Despite ongoing worries about inflation, fewer businesses reported raising worker pay and average selling prices, suggesting a positive outlook for inflation.
More businesses planned to boost their inventories, potentially benefiting the economy.
This report follows a rebound in the Institute for Supply Management’s nonmanufacturing PMI, easing fears of a recession despite a recent rise in the unemployment rate.
Inflation concerns remain, with 25% of owners citing it as their top issue.
However, fewer businesses are increasing wages and prices, reflecting a slowdown in inflation.
The planned price hikes are at their lowest since April 2023, indicating a cooling of price pressures.
Source: Reuters