The optimism of U.S. small company owners rose considerably in February, according to a study released on Tuesday. But, many businesses continue to have trouble recruiting staff.
This month, the National Federation of Independent Businesses (NFIB) reported that its Small Business Optimism Index climbed by 0.6 point to 90.9. Still, it was the fourteenth consecutive month in which the index fell below the 49-year average of 98.
In February, 47 percent of business owners reported vacancies that were difficult to fill, an increase of 2 percentage points from January. Workers were limited for both skilled and unskilled professions.
This is consistent with previous studies indicating a tight labour market. In January, the Labor Department stated that there were 1.9 job vacancies for every jobless person. According to the NFIB, workforce shortages were severe in the transportation, construction, and service sectors. The lowest number of openings was in the finance industry.
The percentage of owners who cited inflation as their greatest concern grew by 2 percentage points to 28%, but was down 9 percentage points from its peak in July, which was the highest reading since the fourth quarter of 1979.
Approximately 38% of owners reported increasing average selling prices, a decrease of 4 percentage points from January. The government is set to report on Tuesday that consumer prices rose substantially in February, while the year-over-year gain is anticipated to be the smallest since late 2021.
The percentage of owners anticipating greater inflation-adjusted sales increased by 5 percentage points to 9%. The owners continued to anticipate deteriorating business circumstances over the following six months.