ABA DataBank: Small-business optimism exceeded expectations in June
The Small Business Optimism Index it rose 2.1 points in June to 97.4, slightly below the 52-year survey average of 98.0, beating expectations of 95.8, according to a report from the National Federation of Independent Business. The gain reversed May’s decline to 95.3 and was driven primarily by improved expectations for better business conditions and higher actual sales rather than current conditions. The survey also found that 22% of business owners reported borrowing regularly in June – down from the historical average of 34%.
The ABA Office of the Chief Economist sees the rebound in June as an encouraging development for commercial and industrial lending. However, high interest rates and a reduced proportion of business owners taking on debt suggest that credit demand is unlikely to increase in the near future.
