“New NABE Survey Shows Business Recovery Gaining Momentum, with More Jobs Ahead”

The NABE April 2010 Industry Survey report presents the responses of 68 NABE members to a survey conducted between March 25, 2010, and April 10, 2010, on business conditions in their firm or industry and reflects first-quarter 2010 results and the near-term outlook.

“NABE’s April 2010 Industry Survey confirms that the U.S. recovery from the Great Recession continues, with business conditions improving,” said William Strauss, Federal Reserve Bank of Chicago. “Industry demand moved higher compared to results in the January 2010 report, pointing to stronger growth in 2010. While input costs have been increasing, prices have also been moving higher, allowing profits to continue to rise. After more than two years of job losses, job creation increased in the first quarter of 2010, suggesting a better outlook for hiring over the next six months. Little of the improvement to date in job growth can be attributed to the stimulus bill enacted in February 2009. Capital spending remained steady. Tight credit conditions continued to negatively impact business conditions.”

Highlights
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• Expectations for economic growth in 2010 have improved significantly. All NABE panelists again indicated business decisions are being made based on expectations for positive economic growth (as measured by real GDP) in 2010. Twenty-four percent (24%) of survey respondents believe real GDP will expand by more than 3%, and 70% of respondents believe the economy will expand by more than 2.0% in 2010.
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• The vast majority (73%) of respondents reported the fiscal stimulus enacted in February 2009 has had no impact on employment to date. While 68% also believe a jobs bill, such as the one recently enacted into law, will have no impact on payrolls, 30% do believe it will boost payrolls moderately.