NFIB Small Business Optimism – A Few Comments

On April 13, the NFIB put out a notable press release. Although the entire press release is worth reading, here are some notable excerpts: “The March reading is very low and headed in the wrong direction,” said Bill Dunkelberg, NFIB chief economist. “Something isn’t sitting well with small business owners. Poor sales and uncertainty continue …

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Productivity – A Few Comments

Over the years, the topic of productivity has often been mentioned. I’ve had thoughts on the matter for years.  An example is this “Letter To The Editor” I wrote concerning a BusinessWeek story back in 1995 (3rd letter down). Here is a March 31 Washington Post story on productivity. As the article says, “One of …

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4Q Corporate Revenues

I have been looking at the revenue figures posted for a variety of diversified manufacturers and distributors.  These are well-respected, S&P500 firms. One would expect these firms to be posting decent revenue gains, especially as compared to the very weak year-ago period (4Q2008).  Additionally, these firms stand to benefit from the prevailing economic climate due …

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3Q Double-Digit Percentage Revenue Declines

As I have discussed previously, double-digit percentage declines in corporate revenues is a serious issue. Many well-respected, broadly-based companies have posted double-digit percentage revenue declines for 3Q.  This is highly significant in that we are purportedly in an economic recovery; as well, 3Q 2008 should provide a (relatively) easy comparable period as the economy was struggling.   SPX at 1078.7 as this …

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Double-Digit Revenue Declines

The August 17 edition of Business Week, p19 had a column titled “A Record Revenue Decline.”  It can be found here at the bottom of the page: http://www.businessweek.com/magazine/content/09_33/c4143btw375952.htm?chan=magazine+channel_the+business+week This line is especially noteworthy: “This marks the first time since S&P started tracking quarterly revenues (in 1993) that revenues dipped 10% or more for three quarters in …

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“Why Aren’t Companies Hiring?” Part V

Businesses have reacted to the tumultuous economic conditions in many ways.  A logical action has been to reduce cash outlays to a level appropriate to what the new economic conditions seemingly warrant.  Along these lines, expenses have undergone scrutiny and in many cases have been cut, in order to preserve cash as well as improve profitability …

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“Why Aren’t Companies Hiring?” Part IV

In addition to the adversity and financial strains suffered by firms during this period of economic weakness, there exists significant uncertainty on many fronts.  As mentioned in the last post, many businesses would find any further economic weakness to pose a formidable challenge.  Although economist forecasts are predicting a weak economic recovery from here, economic forecasts have proven less than accurate the last …

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“Why Aren’t Companies Hiring?” Part III

The economic weakness that has occurred has caused a significant amount of financial damage.  This can be seen in a variety of indicators and statistics, such as widening credit spreads, defaults, credit downgrades, etc.  These worsening conditions have been accompanied by a curtailed (in many cases severely) access to credit.  Whereas credit and other types …

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“Why Aren’t Companies Hiring?” Part II

The economic weakness that accelerated in the latter months of 2008 and into 2009 played out in a very “tricky” fashion. Very few mainstream economists foresaw what would happen.  A testament to the complexity of the situation as 2008 progressed was the business shows airing arguments during the summer as to whether the economy was even in …

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“Why Aren’t Companies Hiring?” Part I

“As unemployment approaches 10%, what is less well publicized is that the number of “underutilized” workers in the U.S. has increased dramatically from 15 to 30 million. Those without jobs, as well as those individuals who only work part-time and have become discouraged and stopped looking, total 30 MILLION people. The number is staggering.” -Bill …

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