U.S. small business optimism rose to a one year-high in May, a hopeful sign for an economy that has hit a soft patch.
The National Federation of Independent Business said on Tuesday its Small Business Optimism Index increased 2.3 points to 94.4 last month, the highest level since May last year. It was the second straight month of gains in the index.
Eight of the index's 10 components advanced, but capital spending plans were unchanged and job creation plans dipped.
The gains in the index suggest that while growth slowed early in the second quarter, the cooling in activity would probably be short-lived as the economy adjusts to higher taxes and deep government spending cuts.
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