Last Thursday, the Philadelphia Federal Reserve released the May 2012 Business Outlook Survey.
One aspect I found particularly notable was a chart indicating responses to “Factors Restraining Hiring.” As indicated, the foremost response was “Expected growth of sales is low.”
In various blog posts – including the April 24 post titled “The Unemployment Situation Facing The United States” – I have commented upon the lagging nature of corporate revenue growth, and how corporate revenue growth appears to be a notable driver of hiring, or lack thereof.
The responses from the May 2012 Business Outlook Survey is yet another confirmation that (expected) revenue growth is a major factor for hiring. This relationship appears to lack widespread recognition.
The Special Note summarizes my overall thoughts about our economic situation
SPX at 1318.86 as this post is written