Small business optimism dropped 2.8 points in July on the NFIB Small Business Optimism Index.
The dip follows a 2.9-point gain in June. NFIB cited the labor shortages as a key ingredient for the decline, as 49% of owners reported job openings that could not be filled—a 48-year record high.
“Small business owners are losing confidence in the strength of the economy and expect a slowdown in job creation,” stated NFIB Chief Economist Bill Dunkelberg. “As owners look for qualified workers, they are also reporting that supply chain disruptions are having an impact on their businesses. Ultimately, owners could sell more if they could acquire more supplies and inventories from their supply chains.”
The number of job openings in the U.S. rose by 590,000 in June to a seasonally adjusted 10.1 million, the highest level since record-keeping began, the Labor Department reported.
The full NFIB report can be found here.
