Every quarter Wells Fargo measures the sentiment of small business owners. This quarter’s data shows small business optimism is generally improving, while small companies added jobs in a wide variety of industries, including construction, manufacturing, and business services.
Here’s what the index, comprised of 600 small businesses, reported for the third quarter:
- Small business optimism overall is at 49, up two points from the second quarter, and nearly double its score from the third quarter 2013;
- When asked to rate their current financial situations, 62 percent of entrepreneurs said it was either somewhat good or very good, an increase of five percentage points from the prior quarter.
Small business optimism is a good thing, but the fact that small businesses are growing revenue and have stronger cash flow today, are two solid financial metrics that signal growth.
Additionally, PNC Bank released an assessment of July labor statistics from the Department of Labor, which showed an increase of 208,000 jobs for the month.
Their report said:
- Construction jobs rose by 22,000, the seventh straight monthly increase.
- Manufacturing jobs rose by 28,000, the twelfth straight monthly increase.
- Professional/business services, including temp workers, added 47,000 jobs.
- Leisure and hospitality added 21,000 jobs.
- Education and medicine added 17,000 jobs.