Optimism at small US businesses faded slightly in May from a near-record April as inflation became more of a concern, but job growth and profits remained strong, a survey released today showed.
The National Federation of Independent Business said its monthly small business optimism index dipped 0.9 points in May to 104.5, notching its 14th consecutive reading at or above 100 - the best performance since the survey began in 1986.
"This is a very strong run, confirming the view that 2004 will be the best economy in 20 years," the federation said in summarizing results of a survey of 587 small U.S. businesses.
"Not everything is perfect ... the inflation picture continues to worsen," it said.
In recent months, 6 per cent of small businesses cited inflation as their number one problem -- up from 1 to 2 per cent in recent years, the federation said.
The report showed 25 per cent of businesses reported higher selling prices, up 3 percentage points from April.
Higher selling prices were also boosting bottom lines, with 26 per cent of owners reporting profit gains, up 3 points from April.
Stronger sales were credited by 62 percent of firms for profit growth, while 12 percent cited higher selling prices.