US business optimism continues to recover from early 2016 lows

The United States small business optimism continued to recover from the lows witnessed during early 2016, edging slightly higher during the month of July, as reflected in two separate gauges linked to their hiring plans and ability to meet their staffing needs.

US small-business optimism index inched up to 94.6 last month from 94.5 in June, marking the fourth straight month of improvement, data released by the National Federation of Independent Business showed Tuesday. Still, the gauge remains below its historical average of 98.

A sub-index tracking their plans to increase hiring nudged higher from 11 percent to 12 percent. Another gauge referencing the share of firms with positions which they were not able to fill right now, a key survey-based measure of labor market slack in the US, slipped from the previous month´s level of 29 percent to 26 percent.

Further, in July, four of the report's 10 sub-indexes rose, paced by a brighter outlook going six months out. Though many small-business owners continued to express concern that business will weaken in the coming months, a gauge of future conditions hit a year high in July, reports said.

The trade group's survey, based on about 1,700 respondents in July, is a monthly snapshot of America's small-business sector. Some 53 percent of respondents said they hired or tried to hire in July, but most of them, 46 percent reported few or no qualified applicants.

Meanwhile, around 59 percent of firms have reported capital outlays, down three points from a year earlier period. Looking further ahead, the percent of owners planning capital investments in the next three to six months fell one point to 25 percent, a historically weak figure, according to the group.