(CareerJournel) - Executives at many large U.S. companies expect to increase hiring, according to a recent survey.
The National Association for Business Economics said its quarterly survey on business conditions showed that 41% of the respondents expect their companies to increase employment over the next six months, up from 34% three months earlier. In the latest survey, conducted between June 8 and 23, 45% foresaw no change in employment and 14% expected decreases through attrition or layoffs.
The association received survey responses from 104 of its members, who are mostly economists or other executives at large companies.
The survey also found that 61% of respondents reported rising demand for goods and services in the second quarter, while 30% reported that demand was unchanged and 9% said that it was falling. The responses on demand were the strongest in seven years, the association said. It also reported that respondents were bullish on profit margins and capital spending plans, though their raw material costs continued to rise.
The pace of economic growth may have slackened recently, said Duncan Meldrum, president of the association, but the survey results show that "the economic recovery is still on track."
Meanwhile, the Institute for Supply Management said its nonmanufacturing business activity index for June stood at 59.9. That was down from 65.2 in May and below the 63 or so expected by many economists. The index is based on sentiments recorded in a monthly survey of more than 370 purchasing and supply executives in a wide variety of industries, including transportation, real estate, utilities and banking. Index readings above 50 point to expanding activity, while those lower than 50 indicate contraction.
Another index from the institute, based on the respondents' reports about new orders, rose to 62.4 in June from 61.3 in May. The employment index climbed to 57.4 from 56.3. The June level for the employment index was the highest since the institute began reporting these indexes in 1997.
The economy has been flashing mixed signals in recent days. Earlier this month, the Labor Department reported that the economy created 112,000 payroll jobs in June, less than half the total expected by economists and a big disappointment after three months of strong gains. Also last week, Wal-Mart Stores Inc., Target Corp. and General Motors Corp. reported that June sales fell below expectations. But the Conference Board, a New York-based business research organization, said last week that its index of consumer confidence hit a two-year high in June.
The Institute for Supply Management said its survey respondents reported the highest rates of employment growth last month in transportation, legal services, real estate, business services and utilities. Executives in communication, banking and agriculture reported lower employment. New orders were strongest in transportation, agriculture, utilities, real estate and other services. Representatives of the communication industry, which includes telecommunication services and television broadcasting, reported lower orders.
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