Small retail businesses might have a need for more liability insurance in the near future, as more customers could frequent these stores with consumer sentiment surging in May.
The Thomson Reuters/University of Michigan’s preliminary reading on the overall index on consumer sentiment jumped from 76.4 in April to 83.7, much higher than the projection from economists who called for a level of 78. This was the highest reading since July 2007.
The indexes measuring current conditions and consumer expectations both saw marked increases as well.
Another indicator showing that small companies could see additional business in the near future is the Conference Board’s Leading Economic Index, which jumped 0.6 percent in April to 95.
“After a slight decline in March, the U.S. LEI rebounded in April, led by housing permits and the interest rate spread,” said Ataman Ozyildrim, economist at the Conference Board. “Labor market conditions also contributed, although consumers’ outlook on the economy remains weak.”
With the potential for additional business in the future, small-business owners should prepare and make sure they have adequate insurance coverage, as a single incident could be financially damaging.