NEW YORK (AP) — For the first time since the pandemic, more companies are hoping to cut jobs at their companies and spend less on expansion, according to a National Economist survey. Jobs that slow down the economy.
But business executives remain concerned that the Fed’s decisions could overwhelm the economy and send the US into recession this year, according to the survey.
Respondents in a January survey by the National Association of Business Economics rated their company’s hiring prospects an average of -7, down from +8 last October when NABE conducted its last survey. I’m here.
But because of inflation, companies still expect to pay higher wages to the workers they retain, according to research.
“The results of the January 2023 NABE Situation of Business Survey show widespread fears of entering a recession this year,” NABE President Julia Coronado said in a statement.
To combat inflation, the Fed is aggressively raising interest rates in an attempt to slow the US economy without falling into a recession known as a “soft landing.” The Fed is expected to raise rates again this week, albeit at a slower pace than in the past, as inflation indicators have fallen in recent months.
One sign of easing inflation is the material costs section of the survey. The NABE survey respondent indicated that material costs were 47, a five-point drop from October, well below July’s 76.
Copyright 2023 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
