A new Federal Reserve report is the latest to suggest the economic recovery is losing ground.
The monthly Carolinas Survey of Business Activity's business conditions index fell again in June, a sign that region's recovery has slowed even further. The index was positive for the seventh straight month - meaning more survey respondents saw an increase in business activity than a decrease - but barely.
It fell five points from May to 3, the lowest level since October, the Fed said. That measure has declined steadily since the beginning of the year as business owners' perceptions of sales growth have weakened.
Meanwhile, a measure of firms' expectations for the next six months also fell in June, suggesting companies aren't as optimistic about future business activity.
The survey, released today, comes on the heels of other dismal economic news. Last week, government data showed Mecklenburg County's unemployment rate ticked up to 10.2 percent in May from 9.9 percent the month before. And Federal Reserve Chairman Ben Bernanke warned that some of the problems slowing the U.S. economy could persist into next year.
Somewhat surprisingly, though, Carolinas businesses are still hiring, the Fed found. Its labor demand index, which measures the number of employees, climbed four points in June. Expectations for hiring fell slightly but remained solidly in positive territory, meaning businesses plan to boost hiring in the next six months.
Still, companies don't expect a labor shortage anytime soon, and "that slack is likely to keep downward pressure on wage growth," the Fed report said.
The report suggests companies are more anxious about the economic recovery than they were a few months ago, when most indicators pointed to slow, steady growth. What do you think? Are sales - and hiring - still improving?
Thursday, June 30, 2011
Report: Businesses uneasy, but some plan to hire
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1 comments:
Basically, the world has changed.
We are no longer top dog and our economy is reflecting that change.
The world economy can do well without many of our lesser skilled workers, so, as a nation, we will experience a permanent reduction in real wealt in order to sustain them.
There will be a period of adjustment, but basically a large portion of our population no longer adds as much to our national wealth as they take away.
Our next generation will be nowhere near as privileged as our last three have been.
They will have to fight much harder for their piece of the pie.
And many people will need to adjust to this change.
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