Economic Climate Strong for Franchise Investment As Year Draws to a Close

The U.S. economy continued to log strong gains this month, painting a picture of growth amid positive signs for small-business and franchise investment in the new year.

  • Topping the list of franchise news is the big picture for the U.S. economy, which accelerated to its highest pace of growth in the past 11 years during the third quarter. The Commerce Department revised its earlier reading of Gross Domestic Product (the value of all goods and services produced by the U.S.), reporting that GDP grew at a real 5.0% annual rate in the third quarter, up from a prior reading of 3.9% and an initial estimate of 3.5% – MarketWatch
  • U.S. consumer spending rose at the fastest pace in three months in November, while income posted the best gain in five months.The Commerce Department said consumer spending increased 0.6 percent in November, double the 0.3 percent October gain and the best showing since August, and that personal income rose 0.4 percent after a 0.3 percent October rise. – Yahoo Finance
  • Companies are laying off few workers and job growth is on track to reach the strongest annual tally in 15 years – Marketwatch
  • Earlier in the month, the NFIB Small Business Optimism Index jumped up 2.0 points to 98.1, just a tick lower than its historical average before the Great Recession. “Expectations for business conditions six months out rose a huge 16 percentage points while expectations for real sales volumes rose 5 percentage points,” said Bill Dunkelberg, NFIB Chief Economist for the National Federation of Small Businesses. “Unfortunately, the index did not sprint past the average, which is typical of a strong recovery before settling back down. …  This performance will have to be consolidated by several more positive readings before owners are confident to hire more employees and expand their business. But it’s a good sign that comes at a good time for small business.” – press release

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