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U.S. small business confidence adds slightly in July

Xinhua, August 10, 2016 Adjust font size:

The U.S. small business confidence added slightly in July, still lower than historical average level, casting a shadow on the U.S. economic growth, a leading industry association said Tuesday.

The National Federation of Independent Business (NFIB) said that its Small-Business Optimism Index added 0.1 to 94.6 points in July from June, well below the 42-year average of 98.

Four of the 10 Index components posted a gain, four declined, and two were unchanged, said the NFIB.

"Uncertainty is high, expectations for better business conditions are low, and future business investments look weak," said NFIB chief economist Bill Dunkelberg in a statement.

After economic conditions, the U.S. political climate and lack of qualified workers are the second and third reasons for why small business owners think the current period is a bad time to expand, said NFIB.

"Our data indicates that there is little hope for a surge in the small business sector anytime soon," said Dunkelberg.

"Small business optimism has been absent for 89 out of the last 91 months," said Juanita Duggan, NFIB president and CEO in a statement.

"Without that optimism, small business owners will not invest, borrow, or create jobs. Small business owners need lower taxes and fewer government mandates and regulations in order to break out of this slump," said Duggan.

U.S. economy grew at an annual rate of 1.2 percent in the second quarter this year, far below market expectation according to the data released by the U.S. Commerce Department at the end of July.

Companies were cutting back on their investment and reducing inventories amid uncertainty are the major reasons for dragging down the economy, said the Commerce Department. Enditem