PRNewswire/ – LOS ANGELES, March 29, 2022 — UCLA Anderson Forecast economists Leila Bengali and William Yu report that the Microbusiness Activity Index for the United States climbed from 100.3 in September to 102.1 in December in the GoDaddy/UCLA Anderson Forecast Microbusiness Activity Index Series update for the fourth quarter of 2021. This rise demonstrates how the growth of small businesses surged in the fourth quarter of 2021.
Bengali and Yu wrote in the paper that “two probable factors might explain this increase in the composite online microbusiness index.” “First, in the fourth quarter of 2021, overall U.S. economic growth increased. Second, internet activity may have a seasonal pattern. Because the index is just in its second edition, there isn’t enough data to determine the extent of seasonality, if any.”
“We recorded evidence of links between the macroeconomy and microbusinesses in our first study, ‘What Drives Microbusiness Formation and Growth?’, which we issued last July. Each further one-unit increase in the index, for example, corresponds to a 0.1 percentage point decrease in the unemployment rate “Yu explains.