U.S. small business sentiment rises in July: NFIB

WASHINGTON Tue Aug 12, 2014 7:38am EDT

Jack n Bills employees Tim Perruso (L) and Rob Ciliento prepare the bar for its opening for the summer tourist season in New Jersey, March 21, 2013.  REUTERS/Lucas Jackson

Jack n Bills employees Tim Perruso (L) and Rob Ciliento prepare the bar for its opening for the summer tourist season in New Jersey, March 21, 2013.

Credit: Reuters/Lucas Jackson

WASHINGTON (Reuters) - U.S. small business sentiment rose in July, in a boost to the economic outlook at the start of the third quarter.

The National Federation of Independent Business said on Tuesday its Small Business Optimism Index increased by 0.7 point to 95.7 last month.

The NFIB index is a leading indicator for the economy and last month's rise followed a decline in June. The survey added to employment, manufacturing and services sector data in suggesting momentum in the economy early in the third quarter.

The economy grew at a 4.0 percent annual pace in the second quarter.

Six of the index's 10 components increased, with a big gain in the share of firms saying it was a good time to expand. There were modest increases in the number of firms increasing inventories, making capital investments and creating new jobs.

Businesses also expect easier credit conditions in the future. There were, however, declines in the share of firms saying job openings were hard to fill and those expecting higher sales growth.

(Reporting by Moriah Costa; Editing by Paul Simao)

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Comments (2)
gcf1965 wrote:
“The economy grew at a 4.0 percent annual pace in the second quarter.” – We have read here that inventories are up measurably. To put this in perspective, lets say you make $1000/week or $52,000/year, not terrible, but just over average. So you go to your employer and ask for a salary advance of another $1000(I know not many can do that). So when you get your check/direct deposit, it is now $2000. This doesn’t indicate you now make $104,000/year, and your future pay will be less than $1000 as you now hae to pay that back over future periods. This is what seems to be happening with the GDP, front loading now (an advance on GDP) at teh cost of future periods. We shall see.

Aug 12, 2014 10:20am EDT  --  Report as abuse
Joker23 wrote:
It is a recovery to a point in time like 3 or 4 years before the crash when jobs paid lower so it is a very soft recovery

Aug 12, 2014 7:36pm EDT  --  Report as abuse
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