The NFIB Small Business Optimism Index increased 0.7 points in June, rising to 94.5. Four of the ten index components posted gains, while three declined.
Labor market conditions were largely unchanged, as 56 percent of small business owners reported hiring or trying to hire, the same as in May. Forty-eight percent reported few or no qualified workers (also unchanged from May). Fifteen percent of employers surveyed cited the difficulty of finding qualified workers as their top business problem. A seasonally adjusted net 11 percent of employers plan to create new jobs, down 1 point from May.
The percent of owners reporting higher sales in the past three months rose 4 points to a net negative 4 percent. Eleven percent of small business owners reported weak sales as their top business problem, down 3 points from the previous month.
Capital spending was slightly lower in June, as 57 percent of owners reported capital outlays, down 1 point from May. The percent of owners planning capital outlays in the next 3 to 6 months rose 3 points to 26 percent.
Credit conditions deteriorated some, as 5 percent of owners reported that all their borrowing needs were not met, up 1 point on the month. Only 2 percent of business owners surveyed reported that financing was their top business problem, the same as in May.
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