Business economists forecast better times ahead for the U.S. economy in a January industry survey released Monday by the National Association for Business Economics.
The upbeat appraisal of economic conditions and prospects resulted from an NABE survey of 84 of its members. Business economists were more optimistic about future sales and forecast increased demand for goods and services, wider profit margins, and accelerated hiring and capital spending.
The survey, conducted between Dec. 17 and Jan. 5, also showed greater pressure on firms’ input prices or costs.
“The number of firms expressing positive hiring plans is at a level not seen in over a decade — a sign of improving labor-market dynamics,” Shawn DuBravac of the Consumer Electronics Association said of the survey results. “Supporting these hiring plans, industry demand continues to move higher, and profit margins are expanding.”
He said firms showed greater optimism in the January survey, with one in five respondents expecting annual economic growth between 3% and 4%. The U.S. economy grew more slowly than economists expected in the third quarter of 2010, expanding at a 2.6% annualized pace, the Commerce Department said.
“Firms are increasing their plans for future capital spending.” DuBravac said. “A majority of respondents anticipate no increase or decrease in investment spending or employment in response to new tax policies, suggesting business decisions are being driven by the fundamentals of an improving economy.”
— Market News International
