More signs are appearing that an end to the recession is on its way. Several indicators are inching their way upward, according to the latest Small Business Economic Trends report, released by the National Federation of Independent Business. However, the report also warns that there are bound to be bumps along the road to recovery as the economy reorganizes itself.
The report indicates the labor market is finding a foothold, even if a bit slippery," with forecasts pointing to unemployment declining to 8.8% in the next three months.
Additionally, the credit freeze predicted earlier this year never materialized, and June data indicate the credit market actually may be easing. Obtaining credit is more difficult for small businesses than it was in 2003, but credit patterns are no different than in past expansions, the report says.
With that in mind, the NFIB expects economic indicators still in negative territory to "soon break the surface and become positive" as the economy "restarts the growth process."
Read the full report on small business conditions here.