Svmuu News: Small business confidence in the U.S. improved in June, but the percentage of business owners who view inflation as the “single most important issue” rose to its highest level in nearly two years, while more businesses reported raising their average selling prices. Data released Tuesday by the National Federation of Independent Business (NFIB) showed that the Small Business Optimism Index rebounded by 2.1 points to 97.4 in June, approaching the index’s 52-year average of 98.0.
The uncertainty index in the survey fell by 2 points to 89, but remained significantly above the historical average of 68. Improved business confidence and reduced uncertainty may reflect the temporary drop in gasoline prices following the fragile ceasefire between the United States and Iran. However, the ceasefire collapsed last week after oil tankers were attacked in the Strait of Hormuz, triggering mutual military strikes between the two countries. NFIB Chief Economist Bill Dunkelberg said: “ ‘The current economic environment brings both positive changes and ongoing challenges for small business owners. Lower fuel costs have provided welcome relief for both businesses and consumers, and businesses expect operating conditions to improve over the next six months.’” (Jin Shi)