The Small Business Authority Index for May 2011 Experiences A Slow Down in Consumer Discretionary Spending
Press release from the issuing company
Thursday, June 23rd, 2011
Newtek Business Services Inc.,The Small Business Authority, announced the release of the SB Authority Index forMay 2011reaching 104.89 points. The SB Authority Index is up 0.35% fromApril 2011. The Russell microcap index and new business formations led the slight increase in the index. The other six components of the index are approved SBA loan originations, retail sales, ADP national employment report, Newtek's proprietary merchant processing volume, estimated small business default loan rate, and the prime rate.
President and CEO,Barry Sloanesaid, "Despite some inertia from a trillion dollars of government budgetary stimulus, the Federal Reserve's policy of QE2 buying$600 billion dollarsof government long term obligations and the Federal Reserve expanding its balance sheet by overone trillion dollarsby purchasing assets from financial institutions, the U.S. economy is slowing. Small businesses rely on consumer discretionary spending and a growth in employment to drive their businesses. Consumer spending is slowing as they are increasing their savings rate, paying less debt and are being pinched by higher food and energy costs. Smaller businesses given the uncertain economic outlook are refusing to invest and hire for future growth."