The National
Federation of Independent Business (NFIB) reported on Tuesday that its Small
Business Optimism Index decreased by 0.2 point to 98.6 in May, following a 3.0-point
advance in the previous month. Thus, the index remained above the 51-year average of
98 for the second consecutive month.
Economists had expected
the gauge to edge down to 98.7 in June.
According to
the report, the June slip in the headline gauge was due to declines in 4 of all
10 components, led by a measure of small business owners viewing current inventory
stocks as “too low” (-6 points). These decreases, however, were partly offset by
gains in the other four indicators, led by a measure of small business
owners reporting positive profit trends (+4 points), and the two components - a measure of small
business owners planning to increase inventories in the coming months and a
measure of small business owners expecting easier credit conditions - were
unchanged.
Commenting on
the latest data, Bill Dunkelberg, NFIB Chief Economist, noted that, small
business optimism remained steady in June while uncertainty fell. “Taxes remain
the top issue on Main Street, but many others are still concerned about labor
quality and high labor costs.,” he added.