A research report was released by SBA office on small businesses performance in second quarter of 2010.
Trends in second quarter of 2010:
- There was a growth in Real Gross Domestic Product for the fourth consecutive quarter. There was an increase in private fixed investment in both residential and non-residential and also exports. There was a decrease in annualized rate of 2.4 percent from the first quarter’s 3.7 percent growth rate. There was an increase in consumer spending by 1.6 percent. There was also growth in exports but it outweighed import growth. There was a rise in industrial production an annualized 7.1 percent. There was fall in the Institute for Supply Management’s manufacturing index.
- In June, consumer and business sentiment was high when compared with earlier part of this year. As per the research by University of Michigan’s consumer sentiment survey, it reached 2 year high. The National Federation of Independent Business’s survey on small business showed the greater willingness to increase or hire over the forthcoming months. However, the top concerns of the small businesses remained poor sales and access to credit.
- There was a drop in unemployment rate to 9.5 percent in June. The economy also generated 524,000 net new jobs in the second quarter. Many of the major industries experienced employment gains notably in manufacturing, business and professional services, education and health services, hospitality and leisure, and government, the construction and financial activities showed continued weakness. There was a fall in non-farm productivity about an annualized 0.9 percent during the second quarter. This was its first decline since the fourth quarter of 2008.
- There was no change in lending standards. There was a fall in treasury securities in the second quarter. There was also significant rise in venture investment to $6.5 billion.
- The inflationary pressure was low. There was an increase in the core consumer price index and the producer price index around 1 percent on an annual basis for the quarter. There was rise in both wages and salaries about 2 percent in the second quarter.