US Small Confidence Rebounds in July

U.S. small business confidence rebounded in July from a 15-month low as owners anticipated solid sales and inventory growth, providing another boost to the economic outlook for the third quarter.

The National Federation of Independent Business said on

Tuesday its Small Business Optimism Index increased 1.3 points to 95.4. About 1,495 businesses took part in the survey. Last month’s increase partially recouped June’s plunge, which had pushed the index to its lowest level since March 2014.

Data on automobile sales, employment and the services sector have suggested a steady build-up of economic momentum at the start of the third quarter after gross domestic product expanded at a 2.3 percent annual rate in the second quarter.

Seven of the index’s 10 components increased last month, while three continued to decline.

Owners were upbeat about business conditions over the next six months, and their expectations about sales improved after weakening for several months. They were optimistic about investing in capital and inventories.

via Reuters

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza