NASE News

Five Indicators To Watch In The Region's Economy (Washington Post)


By Dion Haynes

The deficit reduction agreement, the Standard & Poor’s downgrade of the nation’s credit rating and the tumult on Wall Street have for many local economy watchers turned what seemed to be a growing recovery into a big question mark. Here is what five experts are saying about the region’s prospects for jobs, construction and a double-dip recession....

Kristie Arslan, president and chief executive of National Association for the Self-Employed, said the credit downgrade will quash growth plans of many small businesses that were starting to dig their way out of the first recession.

“They already have had problems getting access to capital. Now they will be paying more for the money they actually get. They aren’t big businesses with lots of liquidity — every dollar matters. ... A lot of our members were considering growth — they’re in a position to bring on one or more people. Now they’re taking steps backward to maintain their current level of operation in case things get worse.” Moreover, she said, small businesses may see subcontracting opportunities dry up. Large corporations “may freeze spending on consultants and it will have ripple effects in the small business community.”

Read the entire article here.