Small Business Optimism Falls in July

The NFIB Small Business Optimism Index decreased to 99.7 in July, a decrease of 2.8 points, reversing the gains in June’s report. The Uncertainty Index decreased 7 points to 76.

A seasonally adjusted net 27.0% of owners plan to create new jobs, down 1 point from the previous month. The percent of owners thinking it’s a good time to expand decreased 2 points to 13.0%. Forty-nine percent of respondents reported job openings they could not fill in the current period, an increase of three points from June and historically very high.

A net 5.0% of all owners (seasonally adjusted) reported higher nominal sales in the past three months, down 4 points from June. The net percent of owners expecting higher real sales volumes declined 11 points to a negative 4.0%.

Two percent of owners reported that all their borrowing needs were not satisfied (down 1 point). Twenty-three percent reported all credit needs met (down 2 points) and 61.0% said they were not interested in a loan (up 2 points). A net 2.0% reported their last loan was harder to get than in previous attempts (unchanged).

Read the NFIB report.