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NFIB Pricing Plans Lowest Since Dec’20

US DATA
  • Small business sentiment in the NFIB survey deteriorated by more than expected in December, easing from 91.9 to 89.8 (cons 91.5), fractionally above the 89.5 cycle low in June.
  • Of particular note with the survey though was the index of 3-month ahead pricing plans dropping 10pts to 24, having plateaued between 31-34 for four months. It's the lowest since Dec'20 and compares favourably with the 21.4 averaged in 2019 pre-pandemic.
  • A typical lag suggests median Y/Y CPI inflation could remain elevated in the near-term but it points to a material slowdown into mid-2023.

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