The Vectra Bank Colorado Small Business Index rose in June to 98.3 from 96.5 in May.
The index uses 100.0 for calendar year 1997 as its base year, and a higher index number is tied in with more favorable conditions for Colorado’s small businesses.
“The improvement in Colorado continues, even as the U.S. economy has slowed for the last few months,” Jeff Thredgold, corporate economist for Vectra Bank Colorado. “While Colorado numbers are still painful, we expect the state to continue to show signs of coming out of the recession.”
The Federal Reserve’s short-term interest rate has been at a record low of 0.00 percent to 0.25 percent since mid-December 2008, and that’s expected to stay the same, Thredgold said. This helps Colorado businesses that are net borrowers because of low costs for credit. He also said most forecasters think the Fed will delay any increase until the first half of 2011.
Vectra also reported the U.S. Small Business Index fell to 102.5 in June, down from May’s 106.5.