Intuit Small Business Indexes Show Mixed Signals
Small businesses in the United States are seeing weak employment and compensation growth, while hours worked and revenue rates decreased.
- Small business revenue decreased by 0.5 percent from the previous month.
- Hospitality and food services sector saw the biggest decline at 0.7 percent, followed by the retail industry at 0.5 percent.
- Employment increased by 0.17 percent in July, an annualized growth rate of 2.1 percent.
- Approximately 35,000 new jobs were created.
- Average monthly compensation ($2,724) grew by 0.3 percent, or $7.
- Average monthly hours worked (106.3) decreased by 0.3 percent, or 24 minutes.
- Growth was seen in overall employment in July for all regions except for the West North Central division, which decreased by 0.10 percent, and the Middle Atlantic, which remained flat.
- A state-by-state breakdown showed increases in all states that the index covers, with the exception of Pennsylvania, New York and New Jersey, which showed declines. Michigan recorded the highest growth at 0.7 percent.
- Employment increased for most states in which Intuit Online Payroll has more than 1,000 small business firms. The month-to-month changes are seasonally adjusted and informative about the overall economy.
"This month's indexes indicate a mixed bag for small businesses," said Susan Woodward, the economist who worked with Intuit to create the indexes. "Revenues have been declining for two months now, so the weak employment growth rate for July is not a surprise.