Small business optimism in US climbs to highest in 2024

By Ovunc Kutlu

ISTANBUL (AA) - Optimism among small businesses in the US climbed to its highest reading of the year in June, according to a report released Tuesday.

The National Federation of Independent Business (NFIB) said its Small Business Optimism Index increased 1.0 points to 91.5 in June, from 90.5 in May.

The index increased 1.2 points in April to 89.7, bouncing back from its lowest in more than 11 years, from 88.5 in March when it recorded its lowest since December 2012.

The index in June also came in higher than estimates of 90.3.

Although it marked its third increase this year, it is the 30th consecutive month that it was below the 50-year average of 98, according to the NFIB.

The report showed that 21% of owners said inflation was their single most important problem, which is down one point from May.

"Main Street remains pessimistic about the economy for the balance of the year," NFIB chief economist Bill Dunkelberg said in a statement. "Increasing compensation costs has led to higher prices all around."

"Meanwhile, no relief from inflation is in sight for small business owners as they prepare for the uncertain months ahead," 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.