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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
US OUTLOOK/OPINION
This morning's NFIB small business optimism survey showed a slightly faster than expected deceleration to 99.7 (vs 102.0 expected) from 102.5 in May. But the details of the survey added further evidence of inflationary pressures building up in the economy.
- While the "higher prices" category ticked lower to 46.0 (47,.0 prior), the last two months have been the most elevated since 1981. July's figure means that 46% of small business owners raised average selling prices in the month.
- As the charts below indicate, we're seeing huge sustained jumps in labor cost indicators, including the % of business owners who plan to increase workers' compensation, and the % saying the "quality" (ie not quantity) of labor is their "biggest problem). The former hit an all-time high and the latter is at a 3-year high (but all-time high on a 3mma basis).
- These readings have been correlated with overall labor costs over the ensuing 9-12 months: another sign price pressures will be sustained going into 2022.
Source: NFIB, BLS, MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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