According to a survey released by The National Association for Business Economics (NABE), many US companies are looking forward to hiring more people in the near future, in addition to investing more in the market.
The survey also claims that the number of employers who are expected to hire workers in the coming six months was greater than the number looking to cut jobs, for the first time since the advent of the recession in December 2007, and this can be taken as another indication towards a sort of recovery for the US economy.
In a first of its kind report since October last year, the survey shows that the number of companies which increased capital spending in the third quarter was more than the ones that cut down on spending.
The NABE also said that the job losses were beginning to subside as the percentage of companies cutting jobs fell from 36% to 31% during the third quarter. As a good sign, the percentage of companies adding new jobs increased to 12% this quarter from a record low figure of 6%.
Unemployment though, still stood at 9.8% in the US, a 26-year high. According to economist’s surveys, 175,000 jobs were cut in October after 263,000 jobs were lost in September. The NABE now expects the US Gross Domestic Product to be positive in the coming year, the most likely figure being an expansion of 1% to 3%.
On Thursday, the US government is expected to announce that GDP in Q3 grew at an annual rate of 3%, after it had shrunk by 0.7% in the second quarter.
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