Business sentiment in US rose in November-report
2022.12.13 06:38
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Business sentiment in US rose in November-report
Budrigannews.com – According to a survey released on Tuesday, small-business confidence in the United States increased in November. However, owners continued to face major issues with inflation and a shortage of workers.
According to the National Federation of Independent Businesses (NFIB), the share of owners who anticipate improved business conditions over the next six months improved the Small Business Optimism Index, which increased by 0.6 points to 91.9 last month.
Nonetheless, the index was below the 49-year average for the 11th month in a row. The percentage of business owners anticipating improved conditions over the next six months increased by three percentage points to -43%. As recently as June, it was -61%.
Inflation was cited as the single most pressing issue by 32 percent of owners, a point lower than in October and 5 points lower than July’s reading, which was the highest since the fourth quarter of 1979. Up one percentage point from October, approximately 51% of owners reported raising average selling prices.
In spite of persistent concerns regarding inflation, there are indications that price pressures are gradually decreasing as the Federal Reserve’s aggressive interest rate increases dampen demand and repair supply chains that have been fractured.
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According to a Reuters survey of economists, government data on Tuesday is expected to show that consumer prices increased moderately in November. The annual increase in inflation is likely to be the smallest in nearly a year.
At the conclusion of the Fed’s two-day policy meeting on Wednesday, it is anticipated that it will begin reducing the rate of increase. However, the U.S. central bank is expected to keep raising interest rates for some time due to the tight labor market and rising wages.
44% of business owners said it was hard to fill job openings, down 2 points from October. According to the NFIB, the transportation, wholesale, and construction industries experienced the greatest difficulty filling open positions.
William Dunkelberg, the chief economist of the NFIB, stated, “This is one of the more serious supply chain problems, and it is not improving.” The economy appears to be slowing down, but the demand for labor has not changed.”
