U.S. small business confidence fell in June to its lowest level in more than a year amid expectations of weaker profits and a softening labor market, which could temper expectations for strong economic growth in the second half.
The National Federation of Independent Business said on Tuesday its Small Business Optimism Index dropped 4.2 points to 94.1, the lowest reading since March 2014, after scaling a five-month high in May.
"Not a recession signal, but not supportive of an optimistic view of growth in the second half. Unexpected events globally could make this worse ... a scenario for continued slow growth," said William Dunkelberg, NFIB chief economist.
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Coming on the heels of a disappointing June employment report and a slowdown in automobile sales, the downbeat confidence survey could raise fears that the economy lost some momentum at the end of the second quarter. The economy contracted at a 0.2 percent annual rate in the first quarter.