US small business optimism slips more than expected in December, NFIB says

Small business confidence in the US fell back to its June lows at the end of 2022, alongside declines in gauges for price pressures and hiring, the results of a survey showed, although salary pressure remained.

The National Federation of Independent Business's small business optimism index slipped from a November reading of 91.1 to 89.8 in December.

Economists had penciled in a dip to 91.5.

Last month's reading also remained well below the index's historical average of 98.0 with eight of its 10 components retreating, especially in that for expectations for business conditions, Oxford Economics said.

A net negative 51% of companies expected better economic conditions over the subsequent six months.

The economic consultancy also noted the 3.0 point rise in a sub-index linked to uncertainty to 71.0 which while in line with its historical average seemed likely to rise in future.

Hiring plans retreated for a third month in a row but the proportion of business owners planning to raise compensation jumped by four points to 44% - twice the historical average - even as hiring plan slipped by one point to 17.0%.