This is an index created by Intuit, a leading small business payroll provider in the US. In general, small businesses recover faster than big businesses because they begin hiring sooner than big businesses. By looking at the small business employment trend, we will be able to get some macroeconomic insight about the US economy generally.
This index basis is starting from Jan 2007, which is 100 points. As of Feb 2010, the index is showing a recovering in small business hiring. Hence, it may provide an indication to the overall job market recovery trend in one to two years down the road.
Interestingly, the US small business hiring trend was beginning on the downward trend back in late 2007, when the US stock market was peaking. Do you think this is an coincidence? Or it is a predictor to the macroeconomy trend of the US?
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Labels: economy, Investment
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