|
The group’s Index of Small Business Optimism fell to 103.6 last
month from 104.5 in May, although it remains near its highest
level in more than a decade. The index surged following the
election of Donald Trump as U.S. president last November, and in
January hit its highest level since December 2004.
The rise was largely attributed to business owners' optimism
surrounding Trump’s promises of deregulation, tax breaks and
infrastructure spending.
But Congress' inability to deliver on those promises has muted
confidence as business operators grow wary of political
infighting over the healthcare reform legislation, and prospects
for tax reform are uncertain.
"As Washington fails to deliver on those two priorities
small-business optimism is dropping," said Juanita Duggan,
president of NFIB. "Gridlock is driving down small-business
optimism, which will eventually drive down the economy."
With fewer small businesses anticipating improved business
conditions, plans to increase employment have also declined,
falling 3 percentage points in June to 15 percent of
respondents. May's reading of 18 percent matched the highest
level since 2006.
In addition, fewer small businesses expressed willingness to
hire in June, according to an NFIB jobs report released last
week in connection with the government's monthly non-farm
payrolls report for June. Forty-four percent of owners said they
were hiring or trying to hire in June, down 5 points from the
previous month.
"Hiring activity remains strong by historical standards, but the
drop in June was unmistakable," said Bill Dunkelberg, NFIB’s
chief economist. "Whether this is the start of a negative trend
or a one-month blip is something we’ll have to keep an eye on."
(Editing by Dan Burns and Leslie Adler)
[© 2017 Thomson Reuters. All rights
reserved.] Copyright 2017 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
