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Small Business Owners' Confidence Fell in June, Says NFIB

Small business owners’ confidence fell slightly in June, according to the National Federation of Independent Business optimism index, after reaching a one-year high in May. The measure dropped nine-tenths of a point, to 93.5. The decline “appears par for the course, given that there is no reason for small employers to be more optimistic and lots of things to worry about,” said NFIB Chief Economist Bill Dunkelberg in a statement. Last month, Dunkelberg cautioned against getting too excited by recent gains.

To compile its monthly optimism index, the NFIB polls the organization’s members—most of which have fewer than 20 employees—on 10 subjects, including hiring plans, sales, inventories, and capital spending. The NFIB collected responses from 662 firms for this month’s index. While confidence fell overall, small business owners’ plans for future hiring increased to the fourth-highest since 2007, according to Bloomberg News.

Earlier this month, ADP (ADP) reported that companies with fewer than 50 workers added 84,000 jobs in June, the most since February.

Clark is a reporter for Bloomberg Businessweek.

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