U.S. businesses’ outlook on sales in the coming months has darkened after sales growth slowed in the second quarter, according to a survey released this morning.
As The Associated Press reports, more companies also expect to cut back on their investment in equipment and buildings in the July-September quarter, the survey found. However, hiring and wage and salary increases are likely to continue at about the same pace in the third quarter as they did in the previous three months.
The overall survey results, compiled by the National Association for Business Economics, portray an economy muddling along at a steady, if tepid, pace.
Fifty-nine percent of businesses expect their sales to grow in the next three months, down from the 71% who forecast sales growth three months ago from the 68% who projected growth in January.
The relatively pessimistic outlook may reflect that sales growth was not nearly as widespread in the second quarter as many companies hoped. Just 46% of firms said their sales rose in the April-June quarter, down from 49% in the first quarter and 54% in the final three months of last year. And 18% said sales fell, the most in more than a year.
The NABE’s survey is based on responses from 112 member companies, about half of whom have more than 1,000 employees. The survey was conducted from June 17 to July 1.
The survey results echo recent data that suggest growth in the second quarter will be slower than many analysts had hoped earlier this year. Americans cut back their spending at stores and restaurants in June, even though hiring has been steady this year and there are signs wage growth may be picking up.
Analysts at JPMorgan Chase now forecast the economy will expand just 2.2% at an annual rate in the second quarter, down from a previous estimate of 2.5%.
