|
The
National Federation of Independent Business (NFIB) said its
Small Business Optimism Index rose four-tenths of a point last
month to 89.9, the first monthly increase since December. Still,
the level remains well below the 48-year average of 98. Some 37%
of owners reported that inflation was their most important
problem, the highest level since the fourth quarter of 1979.
Surging inflation has forced the Federal Reserve to raise rates
aggressively this year in a bid to slow the economy without
tipping it into recession.
But beyond the sharp slowdown in the housing market, the impact
on the economy and price pressures has been hard to see. U.S.
job growth unexpectedly accelerated in July, and economists
polled by Reuters estimate consumer prices rose 8.7% last month
from a year earlier.
That would be down from the 9.1% annualized rise in June but
still far higher than the Fed's 2% goal. The U.S. central bank
is widely expected to continue to raise interest rates further
this year, increasing the risk of recession.
The NFIB survey showed 49% of owners had job openings they could
not fill last month, down 1 percentage point from June, and the
quality of labor remained in second place behind inflation as a
concern, with 21% ranking it as their top business problem, down
2 points from June.
Meanwhile the survey's uncertainty index jumped to its highest
level since April.
"The uncertainty in the small business sector is climbing again
as owners continue to manage historic inflation, labor
shortages, and supply chain disruptions," said William
Dunkelberg, the NFIB's chief economist.
(Reporting by Ann Saphir; Editing by Paul Simao)
[© 2022 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
