Small Business Sentiment Rose in July

Latest NFIB report shows positive sentiment, especially regarding expansion plans.

August 14, 2014

WASHINGTON – U.S. small-business sentiment rose in July, in a boost to the economic outlook at the start of the third quarter, according to this week’s National Federation of Independent Business (NFIB) Small Business Optimism Index which increased by 0.7 point to 95.7 for July.

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, according to a report from Reuters.

Six of the NFIB index's 10 components increased, with a big gain in the share of firms saying it was a good time to expand. There were also 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.

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