US sales and employment likely to grow: Economists

Goods producers — a category that includes manufacturers, farmers and construction — are most optimistic, with 94 percent saying they expect sales to rise over the next three months.

Published: 16th July 2018 09:10 PM  |   Last Updated: 16th July 2018 09:10 PM   |  A+A-

A member of a construction team works on the site of Gables Station, a mixed use project featuring apartments, retail, a hotel and cafes, in Coral Gables. (Photo | AP)

By Associated Press

DETROIT: Most U.S. business economists expect corporate sales to grow over the next three months and hiring and pay to rise with them.

But a majority of the economists surveyed by the National Association for Business Economics say the corporate tax cuts that the Trump administration pushed through Congress have yet to affect their plans for hiring or investment. The administration had promoted its tax cuts, which were heavily tilted toward corporations and wealthy individuals, as likely to raise worker pay and promote corporate investment and expansion over time.

The NABE also said a majority of respondents from goods-producing companies said their companies were delaying investment, raising prices or taking other steps in response to the Trump administration's trade conflicts with other nations.

The results of the quarterly survey being released Monday reflect responses from 98 of the NABE's members between June 14 and June 27.

Sixty-eight percent of the business economists said they foresee sales growing over the next three months. And for a third straight quarter, a higher proportion of respondents reported rising sales at their companies. All the panelists expect the U.S. economy, as measured by the gross domestic product, to expand over the next 12 months.

Goods producers — a category that includes manufacturers, farmers and construction — are most optimistic, with 94 percent saying they expect sales to rise over the next three months.

Fifty-one percent of the economists said wages rose at their companies between April and June, and they expect pay to keep rising over the next three months. It was the first time since the NABE began analyzing such data in 1982 that it has reported such strong wage growth over two quarters. Forty-one percent of respondents said their companies expect to hire in the next three months.

"Labor market conditions are tight, with skilled labor shortages driving firms to raise pay, increase training, and consider additional automation," Sara Rutledge, chair of the NABE's Business Conditions Survey, said in a statement.

Overall, the respondents reported little impact so far from the Trump administration's tariffs against China, the European Union, Canada and Mexico. A majority — 65 percent — said the trade disputes haven't led their companies to change hiring, investing or pricing so far.

But among goods-producing companies — which are directly affected by the tariffs and the counter-tariffs by America's trading partners — a majority said they had made one or more such changes. Twenty-six percent of the goods-producing companies said they had delayed investments, and 16 percent said they had raised prices.
 

Stay up to date on all the latest World news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp