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Small Businesses: Difference between revisions
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== NFIB Survey == | == NFIB Survey == | ||
[[File:Screenshot 2023-07-06 153527.png|center|thumb|546x546px|https://strgnfibcom.blob.core.windows.net/nfibcom/SBET-May-2023.pdf]] | [[File:Screenshot 2023-07-06 153527.png|center|thumb|546x546px|https://strgnfibcom.blob.core.windows.net/nfibcom/SBET-May-2023.pdf]] | ||
=== June 2023 === | |||
[[File:Screenshot 2023-07-11 113810.png|thumb|https://strgnfibcom.blob.core.windows.net/nfibcom/SBET-June-2023.pdf]] | |||
Small Business Optimism Index increased 1.6 points in June to 91.0, however, it is the 18th consecutive month below the 49-year average of 98. | |||
"Small business owners remain very pessimistic about future business conditions and their sales prospects. But in some industries, such as construction, health care, transportation and some consumer services, spending and therefore labor demand remains strong. But overall, the number of firms reporting employment gains has been falling gradually. Capital spending and inventory investment are down. Overall, economic growth is falling. This will help put a damper on inflation, but at the cost of lower employment."<ref>https://strgnfibcom.blob.core.windows.net/nfibcom/SBET-June-2023.pdf</ref> | |||
Insigths: | |||
* Small business owners '''expecting better business conditions over the next six months improved 10 points from May to a net negative 40%''', 21 percentage points better than last June’s reading of a net negative 61%. | |||
* Twenty-five percent of owners plan capital outlays in the next few months. '''Overall, business investment is weak.''' | |||
* A net negative 10% of all owners (seasonally adjusted) reported '''higher nominal sales in the past three months, down two points from May.''' The net percent of owners '''expecting higher real sales volumes improved seven points to a net negative 14%'''. A very negative outlook for the second half. | |||
* A net negative 3% of owners plan inventory investment in the coming months, a weak number. | |||
* The net percent of owners '''raising average selling prices decreased three points from May to a net 29% seasonally adjusted''', the lowest since March 2021. Seasonally adjusted, a '''net 31 percent plan price hikes (up 2 points)'''. | |||
* Seasonally adjusted, a '''net 36% of owners reported raising compensation, down five points from May'''. A net 22% plan to raise compensation in the next three months. | |||
* The '''frequency of positive profit trends was a negative net 24%, up two points from May.''' Among owners reporting lower profits, 28% blamed weaker sales, 24% blamed the rise in the cost of materials, 13% cited the usual seasonal change, 10% cited labor costs, 8% cited lower prices, and 4% cited higher taxes or regulatory costs. | |||
* '''Two percent of owners reported that financing was their top business problem, down two points from May'''. Credit remains available but the price is rising as the Federal Reserve raises its policy rate. | |||
* The '''average rate paid on short maturity loans was 9.2 percent, 1.4 percentage points above May’s reading.''' This was the highest since June 2007. | |||
Labor Insigths: | |||
* '''Forty-two percent (seasonally adjusted) of all owners reported job openings they could not fill in the current period, down 2 points from May.''' | |||
* The difficulty in filling open positions is particularly acute in the manufacturing, construction, and transportation sectors where compensation gains are more frequently reported. Openings are lowest in the agriculture and finance sectors. | |||
* '''Owners’ plans to fill open positions remain elevated, with a seasonally adjusted net 15 percent planning to create new jobs in the next three months, down 4 points from May''' and 17 points below its record high reading of 32 reached in August 2021. | |||
* '''Overall, 59 percent reported hiring or trying to hire in June, down 4 points from May.''' | |||
=== May 2023 === | === May 2023 === | ||