Small business sentiment in the U.S. saw an unexpected rise in June, accelerating more swiftly than anticipated to achieve its highest level this year, although inflation continues to be a primary concern for firms. This information is based on the monthly survey conducted by the National Federation of Independent Business (NFIB) and was released on Tuesday.
The NFIB Small Business Optimism Index increased to 91.5 from 90.5 in May, defying economists' expectations of a decline to 90.3. The index had last been higher in December 2023, when it reached 91.9, according to the NFIB.
Despite this uptick, the index has now remained below its historical average of 98 for the 30th consecutive month.
Inflation continues to be the predominant challenge for small businesses, with 21 percent of owners identifying it as their most pressing issue, a slight decrease of one point from May.
"Main Street remains pessimistic about the economy for the remainder of the year," said NFIB Chief Economist Bill Dunkelberg. "Rising compensation costs have driven prices upward across the board, and small business owners are bracing for an uncertain future with no relief from inflation in sight."
