Persistent inflation dogs small business confidence: US Chamber

The article says persistent inflation is weighing on U.S. small-business confidence even as some other indicators improve. The U.S. Chamber of Commerce found 57% of owners cite inflation as their top concern, ahead of borrowing costs, supply chains, talent shortages, and health-care expenses. At the same time, 69% say their businesses are in good health and 66% expect revenue growth over the next year, though only 33% rate the local economy as good. On the macro side, June CPI cooled to 3.5% year over year and core prices were flat, but the Conference Board’s Leading Economic Index fell 0.2% and small-business optimism remained below historical averages. The report reinforces a mixed outlook: easing price pressures and lower energy costs help, but high rates and modest growth continue to curb hiring and capital spending expectations. For equities, the message is broadly supportive of a slower-growth, higher-for-longer rate backdrop.