The NFIB Small Business Optimism Index unexpectedly declined by -2.8 points to a reading of 99.7 as economic expectations retreated in July. Rising costs and labor shortages also contributed to last month’s decline as both continue to negatively impact profitability.
The percentage of small businesses with job openings is at the highest level in the survey’s 35-year history, in part because 93% of those with openings reported having few or no qualified applicants. As a result, small businesses are planning to raise compensation at a record pace to attract qualified employees (see graph below).
