Eight of 10 Small Business Economic Trend (SBET) index components have seen improvements since April, according the the latest SBET report release on June 9.
The report included a 3.5 point increase in the Small Business Optimism Index, noting an outlook that business conditions are expected to improve over the next six months, according to NFIB.
Small businesses also reported hopes that real sales and future sales will be on the rise, after the lowest reading in the history of the SBET survey was taken in April.
“As states begin to reopen, small businesses continue to navigate the economic landscape rocked by COVID-19 and new government policies,” NFIB Chief Economist Bill Dunkelberg said in the NFIB press release. “It’s still uncertain when consumers will feel comfortable returning to small businesses and begin spending again, but owners are taking the necessary precautions to reopen safely.”
The report stated that retail sales "declined significantly" over the past three months, despite a higher average consumer income due to governmental financial assistance programs.
The report also included these notable findings: earnings trends slid down six points; 5% of small business owners believe now is a good time for business expansion, a statistic up two points since April; the overall percentage of small business owners expecting a higher sales volume over the next three months improved 18 points and a net 14% of business owners reported raising compensation for employees, a two point slide from April.
Overall, the NFIB called the improvements "welcoming news" in their release.
“Thankfully, Gov. Doug Ducey’s executive orders didn’t fully lock down all parts of Arizona’s small-business economy," Arizona State Director Chad Heinrich said in the NFIB release. "Now that those businesses most impacted are able to resume business, we’ll look for increased optimism from small-business owners and hope for confidence from our fellow Arizonans to support their local businesses.”
SBET trends data is collected every quarter by the NFIB Research Center. It has been reporting on small business opinions since 1973.