Tuesday, August 13, 2013

Small Business Optimism Improved Slightly in July

The NFIB’s Small Business Optimism Index grew slightly in July, rising 0.6 index points to 94.1. While July’s reading was the 4th highest since December 2007, the index is still below its long term average of 100.

Financing remained the least cited problem for small businesses in July, with only 3% of respondents reporting it as their single most important problem. Taxes, Government requirements, and poor sales were all tied as the single most important problem facing small businesses, with 21% of respondents citing each.

There were a few encouraging aspects to July’s report such as inventories and sales, profits and wages. Wages increased a seasonally adjusted net 14%. A net seasonally adjusted 11% plan to raise compensation in the coming months, up 5 points.

Despite the improved index, some details of the report were not positive. Capital spending and the labor markets decreased. July’s report found that on net, firms lost jobs at a rate of 0.11 workers per firm.

Read the NFIB report.

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