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Small Business Optimism

In April it has been reported that according to Reuters, U.S. small business sentiment has jumped to its highest level it has been to in 6-1/2 years. This should bolster the hopes of acceleration in economic activity during the second quarter.

The National Federation of Independent Business’s Small Business Optimism Index rose 1.8 points to 95.2 last month, the highest reading since back in October 2007, when the economy was on the cusp of its worst recession since the 1930s, they reported on Tuesday according to a story by Reuters. This is the first time the Index has reached 95 since October 2007 and  the NFIB Research Foundation has collected Small Business Economic Trends data with quarterly surveys since the 4th quarter of 1973 and monthly surveys since 1986.

The National Federation of Independent Business said in a statement that, “April’s reading took the index to a post-recession high and a recovery high level,” according to Reuters. The gain is still modest but it is also the best reading since post-recession.

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“Inflation will begin to pick up because reports of higher compensation are growing in frequency and these costs will be recovered in higher prices,” reported the National Federation of Independent Business. “Reports of increases in average selling prices have accelerated sharply in the last few months, reaching the highest level since 2011,” they said in the report.

The National Federation of Independent Business is a conservative lobbying organization with its headquarters in Nashville, Tennessee and with offices in Washington, D.C. USA, and in all 50 state capitals. The NFIB’s lobbying efforts are focused on the impact of current and proposed legislation on businesses and professional practices at all levels of government, but primarily at the federal and state levels. Its political action committee is called Save America’s Free Enterprise Trust. Almost a quarter of businesses reported raising prices in April.

Image credit: www.bespokeinvest.com

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Jaan Posted by on May 14, 2014. Filed under Business News,Home. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

 

 

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