A net 24% of owners said they expect business conditions to improve in the next six months, the primary driver of the overall index increase. That was nine percentage points higher than in November, but just the first increase since July.
Meanwhile, both actual and planned price increases fell in December. The net share of owners raising average selling prices fell four points to 30%. Though this remains well above the historical average of a net 13%, it suggests that inflationary pressures eased somewhat.
Still, owners’ expectations for higher sales declined five points after reaching a 10-month high in November. Plans to increase employment also fell.
As optimism improved, the group’s measure of uncertainty fell seven points to the lowest since June 2024. Taxes ranked as the single most important problem for small firms, followed by quality of labour.
See also: US core CPI rises as expected in January on services costs
Uploaded by Felyx Teoh
