The U.S. economy has decisively turned the corner with small business confidence hitting its highest level in more than six and a half years in May and the number of jobs available rising to pre-recession levels in April.
The brightening growth picture was further boosted by another report on Tuesday showing a bigger-than-expected increase in wholesale inventories. The new figures added to employment, auto sales, manufacturing and services sector data in suggesting the economy was now in a full-fledged expansion.
The National Federation of Independent Business said its Small Business Optimism Index rose 1.4 points to 96.6 last month, the highest reading since September 2007.
It was the third straight monthly increase in the index, which is viewed as one of the leading indicators of economic growth. Five of the index's 10 components advanced, with big gains in sales and earnings expectations.
Small businesses were also very upbeat about prospects over the next six months. There were increases in both the share of business owners planning to create new jobs and those who believed this was a good time to expand.
In a second report, the U.S. Labor Department said job openings, a measure of labour demand, increased by 289,000 to a seasonally adjusted 4.46 million in April, the highest reading since August 2007.
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