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Local Small Businesses Tread Carefully Despite Upbeat News About Nation's Economy

By Serena Solomon | November 2, 2009 2:21pm | Updated on November 2, 2009 7:47am
Even with the economy growing again, another vacant store on Sixth Avenue reminds both consumers and small business owners that not every thing goes as planned.
Even with the economy growing again, another vacant store on Sixth Avenue reminds both consumers and small business owners that not every thing goes as planned.
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By Serena Solomon

DNAinfo Reporter/Producer

GREENWICH VILLAGE — As the U.S. economy officially pulled itself out of a recession last quarter, some small business owners in Manhattan cautiously began to hope that the worst was over.

Vacant stores are a constant reminder that not all have made it in this neighborhood, but some owners have noticed an increase in business.

Kitty Savage, for example, the owner of an antique jewelry store, has found October to be one of her strongest months in sales this year.

"I have noticed people shopping for Christmas early," she said. "Normally that does not happen until December."

The Commerce Department announced Thursday that the national GDP grew 3.5 percent over the third quarter, good news for an economy that has been shrinking for five of the six previous quarters. It was also the largest increase since the third quarter of 2007.

Savage hoped the positive economic figures would encourage consumers to spend even more.

But Sixth Avenue is still haunted by vacant storefronts. The Bean Coffee and Tea, a popular cafe, suddenly shut last Tuesday.

"It was always full of people," said Mike Pagane, who has owned Jerri's Cleaners & Launderers next door for 20 years. Now he has to find a new place for his morning coffee.

Pagane feels his business had been more or less immune to the financial storm, but customers now ask how much his service costs instead of just dropping off their clothes.

Up in Chelsea, Shen Man, a clothing store owner, was bracing for the colder months.

"Winters are always hard," she said. "[Customers] still have a cap on their spending."

Savage is also uncertain the holiday season will be fruitful for her 20-year-old jewelry store

"This is a jobless recession," said Savage, adding that things won't fully recover until people are back to work.