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The
National Federation of Independent Business (NFIB) said its
Small Business Optimism Index rose 0.6 point to 91.9 last month
amid an improvement in the share of owners who expected better
business conditions over the next six months.
Still, it was the 11th straight month that the index was below
the 49-year average of 98. The share of owners expecting better
business conditions over the next six months increased three
points to -43%. It was -61% as recently as June.
Thirty-two percent of owners reported that inflation was their
single most important problem, down a point from October and 5
points lower than July's reading, which was the highest since
the fourth quarter of 1979. About 51% of owners reported raising
average selling prices, up a point from October.
Despite persistent worries about inflation, there are signs that
price pressures are gradually abating as the Federal Reserve's
aggressive interest rate increases dampen demand and fractured
supply chains mend.
Government data on Tuesday is expected to show consumer prices
rose moderately in November, with the annual increase in
inflation likely the smallest in nearly a year, according to a
Reuters survey of economists.
The Fed is expected to start scaling back the pace of rate hikes
at the close of its two-day policy meeting on Wednesday. But
with the labor market still tight and boosting wages, the U.S.
central bank is seen continuing to raise rates for a while.
Forty-four percent of owners reported job openings that were
hard to fill, down 2 points from October. The difficulty in
filling open positions was most acute in the transportation,
wholesale and construction industries, the NFIB said.
"This is one of the more serious supply chain problems and it is
not improving," said William Dunkelberg, NFIB chief economist.
"The economy appears to be slowing, but it has not shown up in
the demand for labor."
(Reporting by Lucia Mutikani; Editing by Leslie Adler)
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