Small business confidence slips in June
WASHINGTON (Reuters) - Small business optimism fell in June from its one-year high as an uncertain recovery continues to unfold.
The National Federation of Independent Business said on Tuesday its Small Business Optimism Index decreased 0.9 point to 93.5 last month, changing course from two straight months of growth.
Six of the index's 10 components fell and two were unchanged. Only job creation plans and the six-month outlook advanced.
This mirrors economists' predictions that the economy will pick up momentum in the second half of this year after a lackluster start.
More owners are reporting negative sales trends than positive ones. "Nothing cheers up a small business owner more than a customer, and they remain scarce and cautious," the NFIB said.
Last month, the share of owners planning to increase inventories fell 4 points, accounting for about 40 percent of the decline in the index.
Job creation plans increased after slipping last month and the percentage of small business owners reporting they could not fill job openings remained the same.
The NFIB reported earlier this month that small business employment ticked down by 0.09 workers per firm. An almost equal proportion of owners hired as opposed to cut jobs, but those firms reducing employment more than offset the gains at other businesses.
(Reporting by Paige Gance; Editing by Andrea Ricci)
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