New Data from the Commerce Department Shows an Increase in Durable Goods Orders As Businesses Keep Hiring

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Small businesses are leading the hiring gains, fueled by more consumer spending and the availability of affordably-priced small business loans.

Evidence of small business confidence and expansion continues to roll in as multiple new reports and data reveal a sustained upward economic trend.

Data from the Commerce Department, for instance, shows that orders for business equipment climbed more than forecast in August. Bloomberg also reported that consumer spending rebounded 0.5 percent in August following little change in July. That buying power represents about 70% of the overall economy, and strong spending now, even before the last quarter of 2014 gets underway, is also a good indication that businesses will experience a robust holiday buying season.

Meanwhile, American businesses hired another 213,000 workers in September, 11,000 more than in August, according to the ADP Research Institute. “The breakdown of that hiring is also significant,” says Meghan Robinson, CEO of Sunovis Financial, “because so much of it can be attributed to the small business community. The largest companies added 77,000 jobs, for example, which the smallest businesses in the USA grew their payrolls by 88,000 – reiterating that small business is the engine of the American economy.”

Factories received more orders for fabricated metals, machinery, communications equipment, appliances, and electrical components, despite the fact that 80% of economists predicted a decline in durable goods orders of 18%. Automobile orders dropped in August, but that was offset by a 10% surge the previous month, and total volume is up more than 4.5% compared to last year.

Because of all of this manufacturing output and increased business ordering, lenders also see a growing number of small business loan applications. Banks are becoming more lenient with their underwriting standards after being rather stingy for a few years, but there is also substantial lending activity from private lenders. Oftentimes they can process loans much faster, which can be a huge boon for businesses that are in a hurry to place their orders and receive vital inventory. Private lenders also tend to forgive blemishes on credit reports much more than traditional banks, as long as the business owner has a strong balance sheet and a solid strategy for how they intend to invest the funds from the loan.

Contact Info:
Name: David Cohen
Email: Send Email
Organization: Sunovis Financial
Address: Overland Park
Phone: 855 243-7191
Website: http://www.sunovisfinancial.com

Release ID: 66448

CONTACT ISSUER
Name: David Cohen
Email: Send Email
Organization: Sunovis Financial
Address: Overland Park
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