--NFIB small business optimism index declines 0.2 point to 91.2
in July
--Earnings trend worsens significantly
--Job index picks up
Small-business owner confidence fell a bit further in July,
dragged down by worries about earnings, according to data released
Tuesday.
The National Federation of Independent Business's small-business
optimism index dropped 0.2 point to 91.2 last month following a
steep 3-point drop in June.
The report in general was downbeat about business conditions
among small businesses. The view isn't surprising given the other
weak data reported in economic sectors from manufacturing to
retailing.
"The Index has averaged 90 in this recovery, now 3 years old and
is the worst recovery period from a recession," since 1973 when the
data began, said the report.
The top-line index was dragged down by concerns about earnings.
The net earnings trend subindex fell another 5 percentage points to
-27% after it had declined 7 points to -22% in June.
The June new-jobs subindex rose 2 points to 5%. The NFIB said
the net change in employment per firm over the past three months
remained negative but improved to -0.4 in July, from -0.11 in
June.
The subindex of owners reporting hard-to-fill job openings held
steady at 15% after falling 5 points in June.
Small business owners don't expect business activity to improve
much in the next six months. The subindex of expected business
conditions rose 2 points to -8% last month, but the expected higher
real sales subindex declined fell 1 point to -4%.
A few more business owners tried to raise prices last month. The
report said seasonally adjusted, the net% raising selling prices
was 8% in July, 5 points higher than June. Even so, the percentage
does not signal price pressures are building.
"Inflation seems to be moderate on Main Street, so the Fed is
probably right that at least near-term, inflation is not a
concern," the report said.
Write to Kathleen Madigan at kathleen.madigan@dowjones.com
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