NFIB Small Business Optimism Index holds steady

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The National Federation of Independent Business’ (NFIB) Small Business Optimism Index remained steady in June, edging down 0.2 of a point to 98.6, slightly above the 51-year average of 98.

Key findings include:

  • A net negative 5% (seasonally adjusted) of small business owners viewed current inventory stocks as “too low” in June, down six points from May;

  • The net percent of owners expecting better business conditions fell three points from May to a net 22% (seasonally adjusted);

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  • The net percent of owners expecting higher real sales volumes fell three points from May to a net 7% (seasonally adjusted);

  • Twenty-one percent (seasonally adjusted) plan capital outlays in the next six months, down one point from May;

  • The percent of small business owners reporting labor quality as the single most important problem for business remained at 16%, unchanged from May;

  • Eleven percent of owners reported that inflation was their single most important problem in operating their business, down three points from May and the lowest reading since September 2021; and

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  • Data on the overall health of respondents’ businesses showed substantial deterioration, with declines in the percentages reporting their business was in excellent or good health.

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