Small business confidence rises in August

WASHINGTON Tue Sep 11, 2012 8:02am EDT

1 of 2. Conor Hagen, an employee of Mast Brothers Chocolate, hand grinds cacao beans at the company's factory in the Brooklyn borough of New York July 8, 2010.

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WASHINGTON (Reuters) - Small business sentiment rose in August for the first time in four months as more owners anticipated better business conditions after the November 6 elections and increased sales.

The National Federation of Independent Business said on Tuesday its optimism index rose 1.7 points to 92.9 last month.

While owners expected an improvement in business conditions over the next six months, they still did not believe that this was a good time to expand operations.

"But looking past the election and year end, owners became a bit more optimistic about improvements in real sales volumes and business conditions," the NFIB said in a statement.

There were gains in spending and hiring measures last month, with job creation plans doubling. The number of owners reporting job openings were hard to fill increased modestly.

Plans for capital outlays rose, but businesses continued to keep their inventories lean. The share of owners anticipating a rise in inflation-adjusted sales rose last month, snapping a five-month decline.

(Reporting By Lucia Mutikani; Editing by Andrea Ricci)

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Comments (1)
beofaction wrote:
Wow, another positive spin in this election year! I wonder who Reuters supports? Here is what NFIB said on their web site:

“The index rose 1.7 points to another recession-level reading,” said William Dunkelberg, chief economist of NFIB. The August optimism index rose from 91.2 in July. “We’re in maintenance mode.”

The report stated that current small business spending remains depressed, hiring is weak and few businesses are ordering new inventory.

Plus, the presidential race remains a huge overhang on small businesses as major capital expenditures remain on hold, according to the report.

‚ÄúThere is too much uncertainty to make major financial commitments, so owners are keeping their powder dry. This includes loan demand, with record levels of owners expressing no interest in a loan to finance new projects or hiring,” the survey states.

You guys have no conscience – but then again, it seems few in the media do.

Sep 11, 2012 11:05am EDT  --  Report as abuse
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