US Small Business Confidence Rises in August

U.S. small business confidence rose modestly in August, suggesting the economy continued to grow at a steady clip halfway through the third quarter.

The National Federation of Independent Business said on Tuesday its Small Business Optimism Index gained half a point to 95.9 last month.

The NFIB said the survey of 656 businesses had not been impacted much by the recent turmoil in global financial markets, which was triggered by concerns over slowing economic growth in China.

“Most of the interviews were completed before the big slide,” the NFIB said in a statement.

Five of the index’s 10 components increased last month, while three declined and two were unchanged.

The survey’s labor market gauges improved further last month, supporting the view that August’s job growth slowdown was an aberration. The U.S. Labor Department reported on Friday that non-farm payrolls increased 173,000 last month, the smallest gain in five months.

Small business owners were slightly optimistic about sales, but did not believe it was a good time to expand. Owners were pessimistic about business conditions over the next six months and were noncommittal regarding capital and inventory investment.

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