Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

U.S. small-business optimism dips in June, remains near high

Published 07/11/2017, 06:19 AM
Updated 07/11/2017, 06:31 AM
© Reuters. A man prepares his store for business in downtown Los Angeles

© Reuters. A man prepares his store for business in downtown Los Angeles

By Kimberly Chin

(Reuters) - A gauge of U.S. small-business confidence fell in June as business owners expressed frustration over gridlock in Washington, according to a National Federation of Independent Business report released on Tuesday.

The group’s Index of Small Business Optimism <USOPIN=ECI> fell to 103.6 last month from 104.5 in May, although it remains near its highest level in more than a decade. The index surged following the election of Donald Trump as U.S. president last November, and in January hit its highest level since December 2004.

The rise was largely attributed to business owners' optimism surrounding Trump’s promises of deregulation, tax breaks and infrastructure spending.

But Congress' inability to deliver on those promises has muted confidence as business operators grow wary of political infighting over the healthcare reform legislation, and prospects for tax reform are uncertain.

"As Washington fails to deliver on those two priorities small-business optimism is dropping," said Juanita Duggan, president of NFIB. "Gridlock is driving down small-business optimism, which will eventually drive down the economy."

With fewer small businesses anticipating improved business conditions, plans to increase employment have also declined, falling 3 percentage points in June to 15 percent of respondents. May's reading of 18 percent matched the highest level since 2006.

In addition, fewer small businesses expressed willingness to hire in June, according to an NFIB jobs report released last week in connection with the government's monthly non-farm payrolls report for June. Forty-four percent of owners said they were hiring or trying to hire in June, down 5 points from the previous month.

© Reuters. A man prepares his store for business in downtown Los Angeles

"Hiring activity remains strong by historical standards, but the drop in June was unmistakable," said Bill Dunkelberg, NFIB’s chief economist. "Whether this is the start of a negative trend or a one-month blip is something we’ll have to keep an eye on."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.