US Small Businesses Optimistic About Economy, Struggle to Find Skilled Workers

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US Small Businesses Optimistic About Economy, Struggle to Find Skilled Workers
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US small businesses are noticing slightly better business conditions and are feeling less pessimistic about the economy’s future -- but they’re still gloomy when it comes to hiring

As inflation continued to slow last month, optimism improved among the more than 1,300 small businesses surveyed, though it remains subdued compared to pre-pandemic times. The share of owners expecting better business conditions in the next six months rose 10 points from June to a net negative of 30%, “the highest reading since August 2021 but historically very negative,” according to a release.

Gross domestic product, the broadest measure of economic output, grew at an annualized rate of 2.4% in the second quarter, faster than the 2% rate in the first three months of the year. Consumer spending picked up in June by 0.5%, following a more moderate pace of growth in the prior four months. Despite the economy holding steady, optimism among small businesses isn’t back to where it was before the pandemic.

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