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American Entrepreneurs Show Resilience Amidst Pricing and Staffing Struggles

Daniel Kim Views  

In the United States, the nationwide small business sentiment index rose by 1 point to 91.5 in June.

The U.S. government announced that the optimism of U.S. small and medium-sized enterprises (SMEs) has been on the rise for three consecutive months as of June, recording its highest level of the year on July 9.

Despite the still pessimistic outlook for business conditions, the proportion of companies expecting the economy to deteriorate was the lowest in three years.

The overall sentiment index of businesses is significantly below pre-pandemic levels due to high prices, interest rates, labor costs, and ongoing employment issues.

Nevertheless, in June, four out of the ten components that make up the sentiment index increased, thanks to improvements in inventory management.

According to an NFIB survey, the proportion of businesses that raised prices increased by 2 points to 27%, marking its highest level in three months. Unfortunately, it was still below the 2022 peak.

Price increases were more frequent in the construction and retail industries. At the same time, fewer business owners reported plans to charge more in the coming months.

The proportion of owners indicating inflation was 21%, the smallest since the beginning of the year, easing by 1 point.

The proportion of businesses unable to fill job openings in June fell by 5 points to 37%, the lowest since the beginning of 2021, while hiring plans remained stable.

Daniel Kim
content@viewusglobal.com

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