By Neil Shah
More signs are emerging of a slowing U.S. economy with the latest coming from small businesses.
Last week, when the Institute for Supply Management shocked investors by saying America’s manufacturing sector shrank in June for the first time in three years, some economists warned against reading too much into the report.
U.S. factories may struggle amid weaker demand for their goods from Europe and China, but manufacturers aren’t a huge part of the U.S. economy — especially compared with the service-related businesses that cater to ordinary Americans.
The bigger companies captured by the Institute’s report also are more likely to sell things abroad and sneeze when the global economy catches a cold, Capital Economics’ Paul Dales said. The upshot: America’s economy may be in better shape than you think.
Well, we’re going to have to look elsewhere for bright spots. The ISM’s sister report on the service sector, released late last week, fell to its lowest level in more than two years. And now confidence among small-business owners is tanking.
The National Federation of Independent Business’s Small Business Optimism Index fell to 91.4 in June, down 3 points from May, according to data released Tuesday. Economists had predicted a milder fall to
We recommend you visit the following site for more complete information and related topics. Article source: http://blogs.wsj.com/economics/2012/07/10/small-businesses-turn-more-downbeat/