Latest news with #BillDunkelberg
Fibre2Fashion
3 days ago
- Business
- Fibre2Fashion
Optimism rises; uncertainty grows for US small businesses: NFIB
The US small business optimism index rose 1.7 points in July to 100.3, slightly above the 52-year average of 98, according to National Federation of Independent Business (NFIB). Contributing most to the rise in the index were respondents reporting better business conditions and reporting that it is a good time to expand. In contrast to the optimism index, the uncertainty index increased by eight points from June to 97. Twenty-one per cent of small business owners reported labour quality as their single most important problem, up five points from June and ranking as the top problem, NFIB said in its latest survey report. 'Optimism rose slightly in July with owners reporting more positive expectations on business conditions and expansion opportunities. While uncertainty is still high, the next six months will hopefully offer business owners more clarity, especially as owners see the results of Congress making the 20 per cent Small Business Deduction permanent and the final shape of trade policy. Meanwhile, labour quality has become the top issue on Main Street again,' said Bill Dunkelberg, chief economist at NFIB. US small business optimism rose 1.7 points in July to 100.3, driven by improved business conditions and expansion plans, NFIB reported. Labour quality topped concerns, while inflation remained at a three-year low. Hiring eased but skill shortages persisted. Sales and profits stayed weak, price hikes slowed, and taxes ranked as the second biggest issue after inflation. The overall business health improved in July, with more owners rating their operations positively. Thirteen per cent reported their business health as 'excellent' (up five points), and 52 per cent said 'good' (up three points), while those reporting 'fair' or 'poor' declined. The share of owners expecting better business conditions surged 14 points to a net 36 per cent, above the historical average. Sixteen per cent said it was a good time to expand (up five points), while 22 per cent plan capital outlays in the next six months. Inflation remained the top concern for 11 per cent of owners, unchanged from June's three-year low. Labour market conditions eased slightly, with job openings that could not be filled falling to 33 per cent, the lowest since December 2020. Still, 84 per cent of those hiring reported few or no qualified applicants. Compensation pressures moderated, with 27 per cent raising pay (down six points) and 17 per cent planning increases in the next three months. Sales performance was mixed. A net negative 9 per cent reported higher sales, while inventory levels remained subdued at a net negative 8 per cent. Price hikes continued, though at a slower pace, with 24 per cent raising average selling prices and 28 per cent planning increases, added the survey. Profit trends stayed weak, with a net negative 22 per cent, as weaker sales and higher material costs weighed on margins. The survey said that the taxes (17 per cent) ranked as the second most cited business problem after inflation, followed by labour costs (9 per cent), government regulations (8 per cent), and competition from large businesses (6 per cent). Financing issues were reported by 4 per cent of owners, with borrowing activity and rates remaining historically low. Fibre2Fashion News Desk (SG)
The Hill
7 days ago
- Business
- The Hill
Small-business optimism rises amid tariff uncertainty
Optimism among small businesses rose last month, with respondents reporting better business conditions, despite uncertainty around tariffs and inflation. The National Federation of Independent Business (NFIB) said on Tuesday that its Small Business Optimism Index went up 1.7 points in July to 100.3, just above the index's long-term average of 98. The factors that contributed to the rise of the index were respondents reporting better business conditions and arguing that it is a good time to expand. About 16 percent of respondents said it was a good time to expand their business, 5-point increase from June. The Uncertainty Index spiked by 8 points from June to 97. One-in-five small business, 21 percent, said that labor quality was the most important problem, increasing by 5 points from June. 'Optimism rose slightly in July with owners reporting more positive expectations on business conditions and expansion opportunities. While uncertainty is still high, the next six months will hopefully offer business owners more clarity, especially as owners see the results of Congress making the 20 percent Small Business Deduction permanent and the final shape of trade policy,' NFIB Chief Economist Bill Dunkelberg said in a statement. 'Meanwhile, labor quality has become the top issue on Main Street again,' Dunkelberg added. When discussing the overall health of their business, 52 percent said it was 'good,' 13 percent said it was 'excellent,' 4 percent said it was 'poor' and 31 percent said it was 'fair.' Around 11 percent of owners said that inflation was their most important problem in running their business. Some net 6 percent of owners are expecting higher real sales volumes.
Fibre2Fashion
10-07-2025
- Business
- Fibre2Fashion
US small business optimism steady amid mixed signals in June: NFIB
The Uunited States NFIB Small Business Optimism Index held steady in June, dipping by 0.2 points to 98.6, slightly above the 51-year average of 98. A significant rise in respondents reporting excess inventories was the primary factor behind the index's decline. The Uncertainty Index dropped by five points from May to 89. Nineteen per cent of small business owners cited taxes as their most pressing issue, marking an increase from May, and once again ranked as the top concern. The last time taxes reached 19 per cent was in July 2021, NFIB said in a press release. 'Small business optimism remained steady in June while uncertainty fell,' said Bill Dunkelberg , chief economist at NFIB . 'Taxes remain the top issue on Main Street, but many others are still concerned about labour quality and high labour costs.' The US NFIB Small Business Optimism Index in June declined slightly to 98.6, primarily due to concerns about inventory levels, with a net 5 per cent reporting stocks as 'too low'. Expectations for better business conditions and higher sales volumes fell. Labour quality remains a concern for 16 per cent of owners, while inflation pressures eased to 11 per cent. The June index showed a slight dip, with a net negative 5 per cent of business owners viewing their current inventory stocks as 'too low'. This marks a six-point decrease from May, signalling a net increase in inventories. In June, 7 per cent of owners reported inventories as 'too low', down from 8 per cent in May, while 12 per cent reported inventories as 'too high', up from 7 per cent in May. This shift in inventory concerns was the primary factor behind the decline in the Optimism Index. Business owners' expectations for better conditions dropped by three points, standing at a net 22 per cent, still above the 51-year average of 3 per cent. Similarly, expectations for higher real sales volumes fell by three points to a net 7 per cent. In terms of capital investment, 21 per cent of owners' plan capital outlays over the next six months, a slight decrease from May. Labour quality remains a key challenge for small businesses, with 16 per cent of owners citing it as their most important issue, unchanged from May. This marks a decline from April 2020, when labour quality complaints were lower. The percentage of small business owners reporting labour as their top concern aligns with other data suggesting a more tempered labour market across the economy. Inflation pressures appear to be easing, with 11 per cent of owners now citing higher input costs as their most important problem, down three points from May and the lowest level since September 2021. The overall health of small businesses has significantly deteriorated. The percentage of business owners rating their company as in 'excellent' or 'good' health fell, with 8 per cent reporting excellent health (down six points) and 49 per cent reporting good health (down six points). Conversely, 35 per cent rated their business health as fair (up seven points), while 7 per cent reported poor health (up three points). Fibre2Fashion News Desk (SG)
Epoch Times
20-05-2025
- Business
- Epoch Times
SBA Overhauling Biden-Era Loan Program Following High Default Rates
The Small Business Administration (SBA) is overhauling a Biden-era lending initiative, citing its 'alarmingly high rates' of loan default, the agency said in a May 19 The Community Advantage Small Business Lending Company program was designed to issue 7(a) loans to 'underserved communities,' the SBA said. In the 7(a) loan program, the government offers loan guarantees to lenders, which allows the loan providers to advance credit to small businesses with special needs. The SBA blamed Community Advantage's high default rate on lax oversight of the program. 'Community Advantage generated a 7 percent default rate over the last 12 months—more than double that of the overall 7(a) loan portfolio,' it said. 'Additionally, the portfolio is disproportionately stressed, with multiple lenders generating early problem loan rates above 30 percent.' A problem loan refers to any loan that cannot be recovered from borrowers quickly. Related Stories 5/20/2025 5/16/2025 The SBA issued a moratorium prohibiting the expansion of the Community Advantage loan program effective immediately. In addition, the agency also issued a new standard operating procedure that will mandate lenders taking part in the program to meet 'prudent financial stability standards.' Existing lenders have to 'dramatically increase' their capital reserves to continue participating in the program. SBA administrator Kelly Loeffler called Community Advantage an example of the weaponization of government programs to 'tip the scale against deserving small businesses and toward preferred groups and political allies, even when it meant greater risk to American taxpayers.' Overhauling the Community Advantage program is one of the latest steps the SBA has taken concerning its 7(a) initiative. On April 22, the agency The previous administration had eliminated lender fees under 7(a). It also adopted underwriting standards that ended up allowing lenders to approve loans for underqualified borrowers. 'Predictably, the program saw a massive rise in defaults and delinquencies—which the agency was unable to cover due to decreased fee income,' the SBA said. 'By 2024, the 7(a) loan program had a negative cash flow of about $397 million—the first instance of negative cash flow in 13 years.' The SBA said it was restoring 'robust rules' to end such 'reckless lending' practices. Despite changes announced by the SBA, the Small Business Optimism Index fell by 1.6 points in April, the National Federation of Independent Business (NFIB) said in a May 13 According to NFIB chief economist Bill Dunkelberg, 'uncertainty continues to be a major impediment for small-business owners in operating their business in April, affecting everything from hiring plans to investment decisions.' 'While owners are still trying to fill a high number of current job openings, their outlook on business conditions is less supportive of future business investments,' he said. SBA Loan Boom While the SBA tightens policies regarding 7(a) loans, the issuance of these loans has skyrocketed under the Trump administration, the agency said in an April 17 'Since Jan. 20, 2025, SBA has approved over 1,120 7(a) loans for manufacturers with a total loan volume of $677 million,' the agency said. 'During the same period in 2021, SBA approved less than 650 7(a) loans for manufacturers with a total loan volume of $497 million. Nearly 99 percent of American manufacturers are considered to be small businesses.' In the first 90 days of the Trump administration, 7(a) loans for manufacturers were up 74 percent from the same period during the Biden administration. On March 10, the SBA announced a Made in America manufacturing initiative aimed at expanding access to capital for small businesses, cutting down $100 billion in regulations, and creating the necessary infrastructure to support the 'blue-collar boom.' This month, a group of bipartisan lawmakers introduced the Made in America Manufacturing Finance Act, aimed at strengthening small businesses in the country, the office of Sen. Joni Ernst (R-Iowa) said in a May 1 The bill seeks to raise the loan limit for 7(a) and 504 small-business manufacturing loans from the current $5 million to $10 million. The act 'provides small-business owners the capital they need to expand, modernize, and compete,' said Rep. Roger Williams (R-Texas). 'We must continue to support and empower the job creators who keep our communities thriving. Together, we will continue driving the America First agenda forward and creating an environment where the success of Main Street is a priority.'
The Hill
13-05-2025
- Business
- The Hill
Small business optimism declines: Survey
Small business optimism dipped in April for the fourth month in a row, according to the monthly National Federation of Independent Business (NFIB) survey released Tuesday. April was also the second consecutive month in which the small business optimism index fell below the 51-year average of 98, in the poll of small business owners. In April, the index declined by 1.6 percentage points to 95.8. The index came in at 97.4 in March; 100.7 in February; 102.8 in January; 105.1 in December 2024; 101.7 in November 2024. From mid-2022 to October 2024, the index hovered between the high-80s and low-90s. The survey asks small business owners a series of questions to gauge the economic conditions and economic sentiment among business owners. The index includes 'hard' components, including job creation plans, job openings, inventory plans, earnings and capital expenditure plans; and 'soft' components, such as expected business conditions, outlook for expansion, expected real sales, expected credit conditions and inventory satisfaction. The decline in the optimism index was driven in large part by the six-point drop in small business owners' expected business conditions and the six-point drop in unfilled job openings. The share of small business owners expecting better business conditions in six months fell from a net 21 percent in March to a net 15 percent in April — the lowest point since October 2024. In April, 34 percent of business owners reported having job openings they couldn't fill. The last time the level was this low was in January 2021, during the COVID-19 recession. The uncertainty index also fell in April to 92, down from 96 in March, but it remains well above the historical average of 68. 'Uncertainty continues to be a major impediment for small business owners in operating their business in April, affecting everything from hiring plans to investment decisions,' NFIB chief economist Bill Dunkelberg said in a statement. 'While owners are still trying to fill a high number of current job openings, their outlook on business conditions is less supportive of future business investments,' Dunkelberg continued.
