U.S. Small Businesses Less Optimistic As Companies Continue To Deal With Unfilled Jobs
- The National Federation of Independent Business’ Small Business Optimism Index fell in July to 99.7, a decrease of 2.8 points, reversing June’s 2.9-point gain. The NFIB’s Uncertainty Index decreased seven points to 76, indicating owners’ views are held with more certainty than in earlier months. The survey also found sales expectations over the next three months decreased 11 points to a net negative four percent of owners and earnings trends over the past three months decreased eight points to a net negative 13 percent.
- S. nonfarm business sector labor productivity increased 2.3 percent in the second quarter of 2021 as output increased 7.9 percent and hours worked rose 5.5 percent. From the second quarter of 2020 to the second quarter of 2021, productivity increased 1.9 percent.
- The U.S. Bureau of Labor Statistics announced last week that the number of job openings increased to a series high of 10.1 million on the last business day of June. More than 850,000 positions were open in the U.S. manufacturing industry.
- According to the U.S. Department of Labor, new applications for unemployment benefits declined during the first week of August by 12,000 to a total of 375,000. The four-week average of claims increased by 1,750 to 396,250 after an unusually high jump in mid-July. Another 104,572 Americans applied for Pandemic Unemployment Assistance (PUA), an increase of 10,145. Read the full report here.
- U.S. producer prices for final demand goods alone grew 0.6 percent in July, down from 1.2 percent in June. Producer prices for final demand services alone went up 1.1 percent in July, the fastest monthly pace on record. Energy costs increased for the third month in a row, reaching 2.6 percent in July. Read the full report here.
- The U.S. consumer price index (CPI) rose 0.5 percent in July compared to June and 5.4 percent on annual basis. The more modest monthly increase and flat annual rise are signs inflation may be cooling a bit, but it is too early to say if it will return to more normal levels in the coming months.
- Prices for U.S. imports increased 0.3 percent in July, after advancing 1.1 percent the previous month. The July increase was driven by higher fuel prices. U.S. export prices rose 1.3 percent in July following a 1.2 percent increase in June. Read the full report here.
- Inflation is outpacing wage growth. The U.S. Bureau of Labor Statistics also reported last week that real average hourly earnings for all employees decreased 0.1 percent from June to July.