The National Federation of Independent Business (NFIB) reported that its Small Business Optimism Index rose 2.1 points in June to 97.4, nearing its 52-year average of 98.0. Expectations for better business conditions and real sales expectations improved substantially and primarily drove the rise in the Index.

Key Findings

NFIB Research Center Executive Director Holly Wade analyzed the June Small Business Optimism Index, explaining that increased expectations for business conditions, improved expectations for business conditions over the next six months, and improved sales expectations contributed to the rise in the Index. However, earnings erosion was a downside, likely due to small business owners absorbing higher fuel prices and trying to pass on costs to customers.

Wade also noted that small business owners are planning to invest more in their businesses, but capital spending metrics remain below the 52-year average. This could be related to financing costs or uncertainty about economic conditions.

Original reporting: NFIB (National Federation of Independent Business) — read the source article.