NFIB* small business optimism declined in line with expectations from 89.9 in July to 88.1 in August, the sixth consecutive monthly decline. The index peaked in February at 94.5. The details showed a sharp deterioration of the assessment of the economic outlook and sales, lower prices, but maybe surprisingly a small improvement of labour market indicators (plans to hire/positions not able to fill). The latter is maybe anticipation on the Obama measures to stimulate hiring. The weakness is not a surprise, as the survey covers the period in which the debt ceiling and the S&P downgrade of the US rating occurred.
Inflation increased by 0.6% M/M and by 4.5% Y/Y in August, slightly up from 4.4% Y/Y previously, but in line with expectations. The increase of electricity and gas prices will push headline inflation further up in the coming months
* National Federation of Independent Business