Optimism rising in businesses across America
THE US economy should keep growing through 2012, an influential survey forecast yesterday, while rising small business optimism and increasing house prices also pointed to renewed momentum.
Firms across the economy expect strong growth, according to a study from the Institute for Supply Management (ISM), indicating a broad-based recovery.
Manufacturers expect revenues to rise 4.5 per cent through the year and capital investment to go up 6.2 per cent, with 16 of the sector’s 18 industries predicting growth, the study revealed.
Non-manufacturing firms – in sectors as diverse as services, mining and forestry – predict a 4.8 per cent increase in revenues.
Meanwhile the National Federation of Independent Businesses’ (NFIB) small business optimism index rose two percentage points to 94.5, its highest since February 2011.
A net balance of 25 per cent plan to make capital outlays while a balance of five per cent expect to increase headcount.
The housing market also showed improvements with Corelogic reporting a 0.6 per cent rise in prices in March – the first increase since last July.