Economy Is Recovering, Job Creating On the Rise: NABE Study

A 2010 survey conducted by the National Association of Business Economists (NABE) released in April confirms that the economy is in recovery, with industry demand showing expansion for a third consecutive quarter.  There’s good news in the fact that expectations for economic growth have spiked significantly.  Approximately 25 percent of survey respondents believe the real GDP for 2010 will grow by at least three percent; 70 percent believe the economy will expand at a two percent rate this year.

In terms of job creation, the NABE survey noted the first increase in employment in two years.  The number of firms adding to their payrolls rose to 22 percent, compared with just 13 percent reported in January.  According to the survey, companies cutting jobs fell from 28 percent in January to just 13 percent in April.  The number of companies planning to add employees in the next six months rose to 37 percent, compared with the 29 percent reported in January.

“NABE’s April 2010 Industrial Survey confirms that the U.S. recovery from the Great Recession continues, with business conditions improving,” said William Strauss of the 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.”

To listen to an interview with the Fed’s Rick Mattoon about the recovery, click here.