US small business optimism grows

[alp227]

Source: Financial Times

US small business owners were the most confident they been for a year in April, with companies increasing recruitment and spending plans even as concerns remain about the health of the US economy.

The National Federation of Independent Business’s index, which tracks optimism among smaller companies, rose 2 points in April to 94.5, the highest level since February 2011. The reading exceeded consensus estimates of a rise to 93 from March’s 92.5.

Read more: http://liveweb.archive.org/http://www.ft.com/cms/s/0/2ede2670-9908-11e1-948a-00144feabdc0.html

[azmaximillian]

1. More good news.

The General Accounting Office of the United States is ready to report that, for the first time since 2008 ,April 2012 will go down with a budget surplus and that the AIG bailout may net us taxpayers Billions of dollars. This is more good news for an economy that is , obviously on the right track.

[Lionessa]

2. I've been seeing reports like this on and off over the past couple

of years, but in the end their optimism doesn't seem to be based in reality, at least not to date. I think in a stagnant or failing economy it isn't unusual for moods about the future to run in cyclical pattern. I'm more interested in the facts on the ground, not a groups mood about the future unless somehow that's going to put spending money in the pockets of the 99%, which it won't because regardless of their mood, they aren't going to start hiring until they have enough business to warrant more employees or better pay for the ones already there.

That being said, I have one manufacture owner who's a friend in CA. He is experiencing increased demand, having had to nearly close three years ago. However as his work picked up instead of hiring here, everything is outsourced. It's still just him and his partner even though his output went from $0 a month to $50K a month. His "employees" are all out of the country as are most of his clients now, meaning the US economy isn't recovered enough to support buying his product here.

So I have very little confidence in the their confidence report having any valid effect in the US anytime soon.

[DallasNE]

3. What, Small Businesses Are Increasing Recruitment And Spending Plans

But Mitt Romney has pounded us daily that uncertainty is causing small businesses not to increase recruitment and spending. Nowhere are they saying that regulation and high taxes are holding them back so it looks like Romney has still another thing exactly backwards.