Small businesses in the U.S. are investing and filing once-vacant jobs as a result of President Donald Trump's tax cuts, Small Business Administration chief Linda McMahon insisted Tuesday, despite a report that found a decline in hiring last month.
The report by human resources firm Paychex also found that annual wage growth for small business employees moderated.
The Small Business Jobs Index decreased 0.2 percent in June, while the pace of annual wage growth fell to 2.47 percent, or 64 cents an hour, in June, Paychex said.
.“Despite the tightening labor market conditions, we’re seeing only modest levels of wage growth,” said Martin Mucci, Paychex president and CEO. “With the unemployment rate at historic lows, we’d expect to see accelerating wages in this type of employment market.”
However, McMahon, appearing on CNBC's "Squawk Box," said an owner of a landscaping business in Jacksonville, Florida, recently told her that if it weren't for the tax cuts passed last December, he "wouldn't have had the confidence" to invest in a truck for his business.
"I hear all these sorts of stories all over the country," said McMahon, who said she has visited 39 states and met with more than 700 business owners.
"It's a very confident business economy. I'm very bullish on it," McMahon said.
McMahon, co-founder of pro wrestling company , was selected to head the federal agency by Trump in December. She previously told CNBC that Trump's rollback on regulations has renewed optimism in the small business sector.
The 68-year-old McMahon was a major Trump backer during his campaign, giving $6 million to a pro-Trump super PAC.
The Paychex report and McMahon's comments come three days before the Bureau of Labor Statistics releases its closely watched employment data for June. The BLS reported last month showed the U.S. economy continued to add jobs, while the unemployment rate fell.