Company is increasingly confident in the coming year, economic growth will be at a moderate pace, and hired more, according to a survey of business economists.
Nearly a third of the national Association for Business Economics economists surveyed said their companies have joined, according to a report released Monday in the April-June quarter's work. This is the highest percentage in nearly two years. While 39 percent expect their companies in the next six months will hire more. This is the January-March quarter, 40 percent, reaching a new high in nearly two years.
Recruitment pickup, even if in the second quarter sales and profit growth slowed.
Future economic growth optimism increases. Nearly three-quarters of respondents expect the next 12 months, an increase of 2.1% or more. This is from the April release of the first quarter survey, most two-thirds of the year.
Many recent economic data to track the results of the Quarterly Survey of echoes. In the past nine months growth has been slow, but employers to increase employment opportunities, a healthy pace. Many economists expect stable employment, will help accelerate growth in the second half.
June 18 and July 2, between economists NABE survey of its members 65. Economists from a variety of industries, including manufacturing, transportation, utilities, financial, retail and other service companies.
Which found that:
- Only about 35 percent of respondents said their company's sales growth in the second quarter. This is substantially lower than sales in the first quarter rose 55%. 15% of respondents said sales declined from 9% in the first quarter.
- Profit growth has also slowed down: Only 21% of respondents said that margins last quarter, down from 29 percent in the first.
- Only 19% of economists said their enterprises to improve wages and salaries, down 31% in April and the lowest proportion since October.
- Small but growing minority of respondents said that the government spending cuts and tax increases, hurt their business. 26 percent economists said their companies adversely affected, only 16% from April. Nevertheless, 74% of respondents said the government's policy has no effect on their business, although this is from 3 months ago 79% decline.
Looking ahead, companies are increasingly concerned about higher interest rates. This reflects the interest rate jump occurred in late May, the Fed Chairman Ben Bernanke's remarks, the Fed may slow its bond buying program later this year. These purchases in order to maintain low interest rates.
10-year bonds, affecting mortgage rates and other borrowing costs benchmark interest rates increased by nearly a full percentage point to about 2.5% since May.
When a reporter asked their biggest concern in the next 12 months, 17% of respondents believe that rising interest rates. From April, only 4% of people think that such concerns, this is a big jump.
For most companies, the biggest concern is the health of the global economy, which is nearly one-third of the respondents cited. The financial crisis in Europe has been plunged into a recession in the region, and in China, Brazil and other large emerging markets growth has slowed. This pressing U.S. exports.
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