US small business confidence near highest since 1983 in July, NFIB says

Small business confidence in the States jumped past forecasts in July, amid solid readings for the labour market and business investment and indications for stable prices going forward.

The National Federation of Independent Business's Small Business Optimism Index rose from a level of 107.2 for June to 107.9 in July.

Last month's print easily beat the 106.8 point consensus forecast from economists and was just a tenth of a point weaker than the record high of 108.0 hit in July 1983.

Indeed, July's report set new records for the proportion of owners reporting job creation plans and for those with job openings.

In seasonally-adjusted terms, a net 23% of firms said they were planning to create new jobs, three points more than in June, with 37% reporting they had positions they could not fill, which was one point more than in June.

According to Ian Shepherdson at Pantheon Macroeconomics, July's index readings were consistent with "solid growth" in businesses' capital expenditure plans, albeit no acceleration.

Readings on selling prices meanwhile were consistent with little change in core consumer prices over the next year.

"Overall, this is a solid survey, with the most notable development in recent months being the reversal of almost all the sharp drop in hiring plans triggered by the initial eruption of the tariff spats," Shepherdson said.

"This rebound won't last, though, if the administration is dumb enough to impose its threatened tariffs on a much wider array of Chinese imports."