Even as President Barack Obama signed a 22 billion euro small business lending bill into law, US consumer confidence continued to fall.
In September a deteriorating labour market and business conditions pushed consumer attitudes to their lowest levels since February with Americans particularly pessimistic about jobs.
Obama said additional small business loans should do something to help: “Government can’t create jobs to replace the millions that were lost in the recession. But it can create the conditions for small business to hire more people through steps like tax breaks.”
With congressional elections coming up, the president is trying to show voters that he and his party are doing everything they can to boost the faltering US economy.
Unemployment stands at 9.6 percent of the working population in the United States.
Employers are reluctant to hire people with demand so slack.
America’s small businesses have been particularly badly hit by reduced spending by consumers and a lack of demand for products as well as difficulty in getting loans because of the credit crunch following the financial crisis.