Small Business Confidence Back at Pre-recession Levels

Tuesday, 13 May 2014 08:03 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

U.S. small business sentiment jumped to its highest level in 6-1/2 years in April, which should bolster hopes of an acceleration in economic activity in the second quarter.

The National Federation of Independent Business said on Tuesday its Small Business Optimism Index rose 1.8 points to 95.2 last month, the highest reading since October 2007, when the economy was on the cusp of its worst recession since the 1930s.

"April's reading took the index to a post-recession high and a recovery high level," the NFIB said in a statement.

It adds to data such as employment and surveys on the manufacturing and services industries that have shown the economy regaining steam early in the second quarter after growth braked abruptly in the first three months of the year.

Seven of the index's 10 components advanced, with gains in job creation plans and the share of businesses optimistic about earnings. There also was an increase in the share of businesses raising inventories, which was one of the drags on first-quarter growth.

More owners reported they could not find qualified workers to fill open positions, which is leading to higher wages.

"Inflation will begin to pick up because reports of higher compensation are growing in frequency and these costs will be recovered in higher prices," the NFIB said.

Almost a quarter of businesses reported raising prices in April. Another 25 percent plan to increase their prices over the next few months.

"Reports of increases in average selling prices have accelerated sharply in the last few months, reaching the highest level since 2011," said the NFIB.

© 2014 Thomson/Reuters. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Former Member: Oklahoma Mosque Taught Radical Islam

Wednesday, 01 Oct 2014 22:43 PM

A former member of an Oklahoma mosque attended by the suspect in a recent beheading said members and leaders taught radi . . .

Rand Paul: 'I Am Not Opposed to Birth Control'

Wednesday, 01 Oct 2014 11:30 AM

Sen. Rand Paul, R-Ky., widely believed to be seeking the Republican nomination for president in 2016, cautiously tiptoed . . .

Dick Morris: Obama Went Out of Way to Miss Intelligence Briefings

Wednesday, 01 Oct 2014 11:15 AM

President Barack Obama has missed 58 percent of the national security intelligence briefings during each of his terms in . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved