WASHINGTON, D.C. - Small business economic
conditions were strong and steady in the second quarter of
2005, according to the Office of Advocacy’s newly released
Quarterly Indicators: The Economy And Small Business. The
economy has now experienced nine consecutive quarters of real
gross domestic product (GDP) growth of over three percent.
“The economy stayed strong and steady
in the second quarter of 2005 as real growth continued at
over three percent,” said Dr. Chad Moutray, Chief Economist
for the Office of Advocacy. “Industrial production and
proprietors’ income both continued to grow and small
business optimism remained high.”
In the second quarter interest rates continued
to increase, reflecting the Federal Reserve’s efforts
to stabilize the growing economy. Nonetheless, the Senior
Loan Officers Survey showed the demand for small business
commercial and industrial loans remained strong, while at
the same time venture investment deals grew, reaching $5.8
billion.
The price of West Texas crude (a benchmark
for oil) reached $56.26 a barrel in June, an increase of nearly
$2 from March and significantly higher than the average in
previous years. However, despite high energy costs, consumer
and producer prices rose only modestly in the second quarter.
The Office of Advocacy, the “small business
watchdog” of the government, examines the role and status
of small business in the economy and independently represents
the views of small business to federal agencies, Congress,
and the President. It is the source for small business statistics
presented in user-friendly formats and it funds research into
small business issues.
The Quarterly Indictors series, which started
in the first quarter of 2004, is available on the Office of
Advocacy web site at www.sba.gov/advo/research/sbei.html.
