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Small Businesses Report: Continued Modest Growth Likely
Jan 28, 2013
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Small businesses in the United States are not as concerned about current business conditions and are a little more optimistic about the coming year, according to the Wells Fargo/Gallup Small Business Index. The index was up 20 points in early January 2013. The report concluded that, in the current economic environment, capital spending and hiring are likely to show continued modest growth.

The big increase came on the heels of a 28-point decrease in the fourth quarter of 2012 - the biggest quarterly decrease since 4Q 2008. The Wells Fargo report said that the recent rise suggests that worries about the looming fiscal cliff were probably "a little overdone" in late 2012. Wells Fargo noted then the 4Q decrease was in expectations, while current conditions were improving.

The 1Q 2013 report shows current business conditions and expectations both improving. The present situation series was up 8 points to -2; future expectations were up 12 points to +11.

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