U.S. Small-Business Optimism Index Climbs to an Eight-Month High

The National Federation of Independent Business optimism index increased 2.9 points to 102.5, the group said Tuesday. The figure exceeded the median projection of 99.5 in a Bloomberg survey of economists. Seven of the 10 components rose in June.

A record 39% of owners, up from 34% the prior month, reported they raised compensation as firms struggled to fill open positions. Some 46% said they were unable to fill vacancies — more than twice the historical average of 22%, the NFIB said.

Twenty-six percent of businesses are also planning to boost compensation in the next three months. The number of owners who reported higher average selling prices rose by 7 percentage points to 47%, the largest share since January 1981. The increases were more frequent in the wholesale, retail and manufacturing industries. About 44% of those surveyed plan to raise prices in coming months, up a point from the prior month.

U.S. Small-Business Optimism Index Climbs to an Eight-Month High, Bloomberg, Jul 14