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The
National Federation of Independent Business (NFIB) index rose to
91.9 in December from November’s 90.6. It was the first increase
since July and matched that month's reading, but it held below
its 50-year average of 98 for a 24th-straight month.
Conditions have tracked the Federal Reserve’s most aggressive
rate hike campaign since the 1980s, launched in 2022, during
which small business owners have described tightened credit
conditions.
A net negative 25% of businesses reported improved profits in
December, a 7 point increase from the month prior, with labor
costs continuing to weigh on earnings, the report said.
Inflation was the top problem for owners, and the share of
owners reporting inflation as their main concern rose to a
seasonally adjusted 23%. The jump comes after U.S. consumer
prices unexpectedly rose 0.1% in November, Bureau of Labor
Statistics data showed.
On a 12-month basis, prices in November edged up 3.1% driven in
part by a resurgence in the prices of cars and trucks, the BLS
data said. Uncertainty around future economic conditions has
also eroded the business outlook, the NFIB report said.
The share of business owners citing labor quality as their
greatest concern fell four points to 20%, while labor costs rose
slightly as an area of worry. The portion of owners expecting
better business conditions on a six-month basis rose 6 points to
a net negative 36% in December.
(Reporting by Amina Niasse; Editing by Andrea Ricci)
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