NEWS RELEASE
For Release: February 10,
2005 Small Business Economic
Conditions Remained Strong Annual GDP Growth of 4.4
Percent In 2004
Contact: John McDowell, (202) 205-6941
john.mcdowell@sba.gov
SBA Number: 05-07 ADVO
Press Kit
In Fourth Quarter
WASHINGTON, D.C. - Economic conditions for small business remained strong in the fourth quarter of 2004, according to the Office of Advocacys newly released Quarterly Indicators: The Economy And Small Business. The report shows real gross domestic product (GDP) up 3.1 percent in the quarter and up 4.4 percent for the year.
Economic conditions for small business continued to be strong in the fourth quarter of 2004, said Dr. Chad Moutray, Chief Economist for the Office of Advocacy. And for the year, GDP growth of 4.4 percent is good news for small business. In the fourth quarter alone businesses added over 600,000 net new jobs. The outlook for the small business economy remains bright.
A number of indicators are showing signs of positive change. Americans were more optimistic in the fourth quarter, according to both the National Federation of Independent Businesss Optimism Index and the University of Michigans Consumer Sentiment Survey. For the year, the economy added 2.2 million nonfarm payroll jobs, 606,000 in the fourth quarter.
Credit markets also worked in favor of small business. According to the Senior Loan Officers Survey, small business demand for commercial and industrial loans remained strong; a quarter of all respondents continued to ease rather than tighten lending standards. Moreover, in 2004 $2 billion more was invested in venture capital deals than in 2003, according to the National Venture Capital Association; $5.3 billion was invested during the fourth 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.
The Quarterly Indictors series, which started in the first quarter of 2004, is available on the Office of Advocacy web site at http://www.sba.gov/advo/research/sbei.html.
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Created by Congress in 1976, the Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. Appointed by the President and confirmed by the U.S. Senate, the Chief Counsel for Advocacy directs the office. The Chief Counsel advances the views, concerns, and interests of small business before Congress, the White House, federal agencies, federal courts, and state policy makers. Economic research, policy analyses, and small business outreach help identify issues of concern. Regional Advocates and an office in Washington, DC, support the Chief Counsels efforts. For more information on the Office of Advocacy, visit www.sba.gov/advo, or call (202) 205-6533.