September 10th, 2010 by admin

According to a recently released survey, small businesses in the United States are now more optimistic than they have been in the last 2 years. Though small business owners expressed optimism about the economic outlook, they were reluctant to expand staffs and boost capital spending.

The National Federation of Independent Business (NFIB) said 7 out of the 10 index components rose as per its survey but capital expenditure and job creation plans barely gained and were the same as those during the recession.

From Foxsmallbusinesscenter.com:

NFIB chief economist William Dunkelberg said the biggest concern of small business owners is weak sales and until that turns around, they will not be inclined to hire new staff or invest in new equipment.

The NFIB survey of 823 businesses through the end of May showed that more small businesses are experiencing weakening sales than are enjoying sales improvement. Widespread price cutting was also reported, it said. May was the 18th consecutive month in which more business owners reported cutting average selling prices than raising them.

“The Fed is right, the likelihood of inflation breaking out in the near term is low, but the picture is changing and could change quickly,” the NFIB report concluded.

Small businesses account for about half of gross domestic product and many analysts do not see U.S. employment picking up much until small firms begin hiring.

The survey also disclosed that more small business owners expect market conditions to improve in the coming six months.

Tags: capital spending, economic outlook, job creation, small business, small businesses

August 20th, 2010 by admin

It will take a few years to dig the United States out of the recession, a campaigning President Barack Obama said this Tuesday.

Obama is eager to put a human face on his contention that the US is bouncing back, thanks to resilient success stories and help by the government. But the president is expected to have a tough time with millions of people out of work and economic growth still on the slower side.

From Timesofindia.indiatimes.com:

The president’s economic outlook, coming in the heat of a divisive congressional campaign, reflected his tricky political reality. He must try to persuade people soured by the sagging economy that they should re-elect Democratic leaders now, but he also is laboring to get voters to measure his efforts with a long view, as he looks ahead to his own re-election campaign in 2012.

Darting into Seattle to stir up enthusiasm and cash for Democratic Sen. Patty Murray, Obama spoke as a president whose agenda is on the line. He has pushed through all his big legislative items with virtually no Republican backing.

Obama’s heavy fundraising tour, touching just about every region of the country in three days, underscores the stakes of the November election. It is one that will be seen as a referendum on Obama and on Democratic control of Congress.

Obama said that 8 million jobs will be brought back in the next few years to take the US fully out of the recession.

Tags: Barack Obama, economic growth, economic outlook, Obama, recession