"Congress diddled right up to the end of the year, so there was no new information about the future of the economy, other than rising concerns that nothing would be done"
- William Dunkelberg, the group's chief economist
Confidence among small-business owners in the world's largest economy rose more than initially was expected last month, as owners waited for a decision on fiscal policy. The gauge of small-business optimism rose 0.5 point last month to 88.0 in December, beating analysts' estimations of a 46.3 reading, the National Federation of Independent Business's said Tuesday. Lingering negotiations among lawmakers about how to avert the so-called "fiscal cliff" probably weighed on the sentiment of small-business owners. However, the survey does not include the deal reached in the US Congress that could have drained about $600 billion from the economy at the start of the year.
"Congress diddled right up to the end of the year, so there was no new information about the future of the economy, other than rising concerns that nothing would be done," William Dunkelberg, the group's chief economist, said in a statement. "Having some certainty about tax rates and some ‘tax extenders' will provide some relief to owners, but doesn't guarantee a more positive forecast for the economy."
"Were it not for population growth supporting consumption and net new small business creation, we would have no growth at all," the report said.
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