A person walks past a grocery store in Manhattan, New York City, U.S., March 28, 2022. REUTERS/Andrew Kelly/File Photo
WASHINGTON, June 14 (Reuters) – U.S. small-business confidence edged down in May as worries about high inflation persisted, according to a survey on Tuesday, which also showed demand for labor remained strong despite rising interest rates and tighter financial conditions.
The National Federation of Independent Business (NFIB) said its Small Business Optimism Index dipped 0.1 point last month to 93.1. The share of owners expecting better business conditions over the next six months hit a record low.
Expectations for better business conditions have deteriorated every month since January. Inflation remained the biggest challenge.
High inflation has prompted an aggressive response from the U.S. Federal Reserve, leaving investors worrying about a protracted period of very slow growth or even a recession next year. The central bank is expected to raise its policy interest rate by another 50 basis points at the end of a two-day meeting on Wednesday. The Fed has increased the overnight rate by 75 basis points since March.
The NFIB survey showed 51% of businesses reported job openings they could not fill, up four points from April. The vacancies were for both skilled and unskilled labor, with worker shortages most acute in the construction, manufacturing, retail, and wholesale industries. Small business job openings are more than 20 percentage points higher than the historical average.
The government reported early this month that there were 11.4 million job openings across the economy at the end of April. The Fed is trying to cool demand for labor, without driving the unemployment rate too high.
Despite the acute worker shortage, the appetite for wage increases is waning. About 46% of small business owners reported raising compensation, down three points from April. A quarter planned to do so in the next three months, down two points from April, but still a historically very high share.
Our Standards: The Thomson Reuters Trust Principles.
The trillion-dollar retail investment express is losing steam, dampening the fortunes of British trading platforms that boomed during lockdowns on the back of a meme stocks frenzy.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.
Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2022 Reuters. All rights reserved

source

Lascia un commento

Il tuo indirizzo email non sarà pubblicato. I campi obbligatori sono contrassegnati *