Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

U.S. small-business sentiment dips in May -NFIB

Economy Jun 14, 2022 06:18AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A person walks past a grocery store in Manhattan, New York City, U.S., March 28, 2022. REUTERS/Andrew Kelly/File Photo

WASHINGTON (Reuters) - U.S. small-business confidence edged down in May as worries about high inflation persisted, according to a survey on Tuesday, which also showed demand for labor remained strong despite rising interest rates and tighter financial conditions.

The National Federation of Independent Business (NFIB) said its Small Business Optimism Index dipped 0.1 point last month to 93.1. The share of owners expecting better business conditions over the next six months hit a record low.

Expectations for better business conditions have deteriorated every month since January. Inflation remained the biggest challenge.

High inflation has prompted an aggressive response from the U.S. Federal Reserve, leaving investors worrying about a protracted period of very slow growth or even a recession next year. The central bank is expected to raise its policy interest rate by another 50 basis points at the end of a two-day meeting on Wednesday. The Fed has increased the overnight rate by 75 basis points since March.

The NFIB survey showed 51% of businesses reported job openings they could not fill, up four points from April. The vacancies were for both skilled and unskilled labor, with worker shortages most acute in the construction, manufacturing, retail, and wholesale industries. Small business job openings are more than 20 percentage points higher than the historical average.

The government reported early this month that there were 11.4 million job openings across the economy at the end of April. The Fed is trying to cool demand for labor, without driving the unemployment rate too high.

Despite the acute worker shortage, the appetite for wage increases is waning. About 46% of small business owners reported raising compensation, down three points from April. A quarter planned to do so in the next three months, down two points from April, but still a historically very high share.

U.S. small-business sentiment dips in May -NFIB
 

Related Articles

Mexico June retail sales fall 0.3% from May
Mexico June retail sales fall 0.3% from May By Reuters - Aug 19, 2022

(Reuters) - Mexican retail sales fell 0.3% in June from May, the national statistics agency said on Friday. Sales increased 4.0% percent in June compared to the same month a year...

Strikes bring London's transport network to a halt
Strikes bring London's transport network to a halt By Reuters - Aug 19, 2022

LONDON (Reuters) -London's transport network ground to a halt on Friday as train and bus workers held strikes over pay and conditions, the latest in a summer of labour market...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email