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Evidence of a fragile recovery at best
Anemic growth in small business lending so far suggests weak prospects for economic expansion. In fact, it's only a step away from flat-lining.
According to Reuters, lending to small businesses -- where the vast majority of jobs are created -- barely grew in February.
The Thomson Reuters/PayNet Small Business Lending Index, which measures the overall volume of financing to U.S. small businesses, edged up to 98.3 in February from 98.2 a month earlier.
Taken with a slowed growth rate in the first quarter of 2 to 2.5 percent, down from a 3 percent annual rate in the previous quarter, it's simply not enough to bring down the country's 8.3 percent jobless rate.
There's only one logical way to read these tea leaves; there's caution on the part of small business owners.
And more bad news -- December and January readings for PayNet's lending index were both revised downward.
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