When the growth of sales slowed down in the second quarter of the year in the United States, the outlook on volume of sales in the next few months took a severe beating among the US businesses. This was revealed in the results of a survey that was shared on Monday, July 20, 2015.
What is expected out of the companies in U.S.?
Several companies in the United States are expected to slash their investment in buildings and equipment in the time period of July to September as observed in the survey. But increase in salary and wages of the workforce and recruitment of staff are expected to continue in the same manner as they did in the last three months. The compilation of the survey results had been conducted by the National Association for Business Economics and it portrays a US economy that is in a state of disorder though it is moving at a steady, but lukewarm manner. It has been found that about 51% of the businesses are optimistic that there will be a growth in sales in the next 90 days. About 71% had forecasted about the sales growth three months back, from the 68% who had opined that there would be sales growth in the month of January this year.
Of course it seems a slightly pessimistic view, but truth is that the growth in sales did not happen as was hoped by the companies for the second quarter of the current year. Only 46% of the companies said that they had an increase in their sales in the April to June quarter, which was down from 49% in the first quarter of the year and 54% in the final 90 days of 2014. 18% of the companies surveyed said that their sales dipped for the most number of times in more than a year.
Criteria for selection
There were about 112 member companies that participated in the survey conducted by NABE. Half of these companies had over 1,000 employees. The time period of the survey was between June 17 and July 1.
The results of the survey based on the responses of all these companies indicate that the growth in the 2nd quarter of this year would be slower than what several analysts had forecasted in the beginning of the year. There were many Americans who slashed their expenses at the restaurants and the stores in the month of June this year. One good thing is that till now recruitment has been stable and there are indications that the growth of wages may pick up soon.