Small business confidence reaches three year high

WASHINGTON — Confidence among small U.S. business owners rose to a three year high in January, but concerns about sales saw owners remain cautious about hiring and spending plans, a survey showed on Tuesday.

The National Federation of Independent Business' optimism index rose 1.5 points to 94.1, the highest reading since December 2007 when the recession started. Despite the increase, the index still remained near low levels.

The downturn, which was the longest and deepest since the Great Depression of the 1930s, officially ended in June 2009.

"The average reading before the recession started was 100," NFIB said in a statement. "Expectations improved, but not spending and hiring plans, more hope than action."

The survey, which was conducted through January 31, showed respondents were concerned about sluggish sales, despite signs of strengthening in consumer spending, which grew at a 4.4 percent annual rate in the fourth quarter.

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