By Ovunc Kutlu
ISTANBUL (AA) - Optimism among small businesses in the US rose in July, climbing to its highest reading since February 2022, according to a report released Tuesday.
The National Federation of Independent Business (NFIB) said its Small Business Optimism Index increased 2.2 points to 93.7 in July from 91.5 in June.
Although it marked its fourth increase in 2024, it is the 31st consecutive month that the index was below the 50-year average of 98, according to the NFIB.
The report showed that 25% of owners said inflation was their single most important problem, which is up four points from June.
"Despite this increase in optimism, the road ahead remains tough for the nation’s small business owners," NFIB chief economist Bill Dunkelberg said in a statement. "Cost pressures, especially labor costs, continue to plague small business operations, impacting their bottom line."
"Owners are heading towards unpredictable months ahead, not knowing how future economic conditions or government policies will impact them," he added.
The index provides an indication of the health of small businesses in the US, which account for approximately 50% of the nation's private workforce.