Wednesday, August 13, 2014

Small Business Sector Unable To 'Pull Its Weight'

by JASmius

As we make our economic rounds, let's visit the morgue coma ward (where we spend all our time anyway) and check up on this particular patient:

While the National Federation of Independent Business (NFIB)'s Small Business Optimism Index rose 0.7 point in July to 95.7, don't break out the champagne yet.

Eight of the index' ten components were little changed. And the two that did appreciate solidly remain historically low.

"Expectations for business conditions and outlook for expansion accounted for virtually all of the net gain in July's index," NFIB Chief Economist Bill Dunkelberg said in a statement.

The former component rose four percentage points and the latter rose three percentage points. The biggest loser was job openings, down two percentage points.

"Capital spending reports continue to remain mediocre, spending plans are weak, and inventories are too large, with more owners reporting sales trends deteriorating than improving," Dunkelberg noted.

Bottom line: "as long as these stats continue to hold, the small business half of the economy will continue to not be able to pull its weight," he added.

In short, the comatose patient passed some gas.  Otherwise, there's no change in the patient's condition or prognosis.  And whatever you do, Nurse, do not let that quack/pusher "Dr." Yellen in this ward ever again, is that clear?

It's a good thing the morgue is right next door....

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