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Business Sector Reporting Increased Optimism And Demand

Written by Ken Gaebler
Published: 1/24/2011

A report from the National Association of Business Economics is reporting that demand is up for the sixth consecutive quarter.

According to recent news for small business owners, the economy is strengthening as the recovery gains speed.

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A survey, released Monday, from the National Association of Business Economics is reporting that during the last three months of 2010, industry demand increased for the sixth consecutive quarter, with 55 percent of survey respondents reporting rising demand versus 12 percent reporting falling demand.

Additionally, these increases coincide with a significantly improved economic outlook. Sixty-two percent of respondents are planning for 2 to 3 percent GDP growth this year.

"The number of firms expressing positive hiring plans is at a level not seen in over a decade - a sign of improving labor market dynamics. Supporting these hiring plans, industry demand continues to move higher, and profit margins are expanding," said Shawn DuBravac of the Consumer Electronics Association.

Despite the survey's inclusion of both small and large businesses, 2011 is forecast to be a much more profitable year, as banks begin lending at a more vigorous pace and consumer optimism continues to grow.

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