US NFIB business optimism sees small uptick in July

According to the National Federation of Independent Business (NFIB) Small Business Optimism Index which provides a indication of the health of small businesses in the U.S. rose 0.1 points to 94.6 in July, after a rise of 0.7 points in June. The reading was slightly above the consensus view which called for a flat reading.

At 94.6, the index remains well below the 42-year average of 98. Details of the report were mixed. Four of the 10 Index components posted a gain, four declined, and two were unchanged. The outlook for business conditions in the next six months continued to improve, gaining 16 percentage points since January, but still more owners expect conditions to be worse than expect improvement.

Employment sub-indicators were slightly mixed but continued to point to tightness in the labor market. Businesses remain keen to continue hiring with labor market tightness and quality of labor issues increasingly reported. Job openings in July lost -3 points, but on a 3-month trend basis, remain at the highest level since 2000. Additionally, plans to increase employment and raise worker compensation improved by one point each to 12 percent and 15 percent respectively.

"Continued income and job gains, along with the windfall from still low energy prices, will continue to support consumer spending and help shore up business confidence and the rest of the economy over the medium-term," said TD Economics in a report.