Small Businesses in U.S Slightly Optimistic About Their Business Conditions

The National Federation of Independent Business, had released Small Business Optimism Index, which reached 91.7 in October, gaining 2.7 points. But, still the index remains in recession zone.

Consumer spending and consumer sentiment remain weak, profit improved due to improved sales growth in each quarter. But still the components of sales index are negative, but they are heading in the right direction. Due to weak sales, the owners are not ordering new stock regularly, liquidating the inventories. The businesses will have toorder new stock only when the demand and spending from consumer increases.

Though the average employment growth rate per firm in private sector remain unchanged during October, it is still not sufficient in bringing down the unemployment rate.

According to U.S Labor Department, in October the jobless rate was 9.6 percent, which is same as previous months. Payrolls in non farm category rose by 151,000, the first gain since May. Hiring in private sector rose by 159,000. In October, 8% (unchanged from last months) of small business owners participated in the survey, plan to hire new employees, 13% (down by 3% from last month) plan to layoff employees.

Comments are currently closed.