NEW YORK, July 9 (Xinhua) -- U.S. small business confidence increased to a six-month high in June, amid persisted inflation concerns and worries about tightened labor market, according to a new report released on Tuesday.
In the report, the National Federation of Independent Business (NFIB) said that its Small Business Optimism Index reached 91.5 last month, the highest level since last December.
Despite the improvement in business sentiment, June saw the 30th straight month that the index stayed below the average of 98.
Concerns about inflation lingered on and higher borrowing costs weighed on capital investment.
Inflation is still the top small business issue, the report said. About 21 percent of small business owners reported that inflation is the most important problem in operating their business.
Data also suggests that the U.S. labor market remained tight in construction, transportation, and retail sectors.
About 16 percent of business owners reported unfilled positions for unskilled labor in June, an increase of two percentage points from the prior month.
A net of 22 percent of businesses planned to raise compensation in the next three months, four percentage points up from May.
"Main Street remains pessimistic about the economy for the balance of the year," said Bill Dunkelberg, NFIB chief economist.
"Increasing compensation costs has led to higher prices all around. Meanwhile, no relief from inflation is in sight for small business owners as they prepare for the uncertain months ahead," he said.
