Small Business and the U.S. Economy

During the third quarter, the U.S economy continued to expand despite the ramifications of Hurricanes Katrina, Rita and rising petroleum prices.

Measures of optimism were mixed, and the unemployment rate fell to 4.9 percent in August but rose to 5.1 percent in September after the hurricanes, based on the Office of Advocacy’s quarterly indicators. In an attempt to stabilize the growing economy the Federal Reserve continued to raise interest rates.