Upbeat Small Business Signals Decreasing Unemployment
Ed Yardeni | May 14, 2014 12:12AM ET
April’s survey of small business owners by the National Federation of Independent Business (NFIB) provides additional evidence of an improvement in revenues. The percentage of respondents saying that sales are poor (on a six-month-average basis) dropped to 15%, the lowest since May 2008 and down sharply from the record high of 33% during March 2010.
Interestingly, the poor-sales series happens to be highly correlated with the unemployment rate. Of course, as small business owners turn more optimistic about their sales prospects, they tend to increase their hiring. Sure enough, on a 12-month-average basis, the percent of firms with one or more job openings rose to 21% in April, the highest since June 2008. The percent expecting to increase employment rose to 8%, the highest since August 2008.
Today's Morning Briefing: Above the Rest. (1) Earnings and revenues are looking up. (2) Q1 wasn’t so chilly for earnings and revenues. (3) Four big S&P 500 sectors with record forward earnings. (4) Fewer small business owners say that sales are poor. (5) More job openings. (6) Revenues stuck in the mud for the rest of the world. (7) US stands out. (8) EMU MSCI at six-year high despite drab earnings. (9) Bundesbank ready to support more of whatever it takes from ECB.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.