Businesses Pessimistic About Economy

Concerns about the coming "fiscal cliff" and Eurozone problems have U.S. companies pessimistic about the economy and less likely to hire, a new survey reports.

Bloomberg reports:

Some 62 percent of businesses project no change in employment over the next six months, according [to the] results of a National Association for Business Economics’ survey released today in Washington. The share is up from 48 percent in the group’s April report.

The lack of confidence signals the job market will show little progress after company payrolls rose last quarter at the slowest pace in more than two years. The data also indicated inflation will ebb as more businesses said the lack of demand will prevent them from raising prices.

"The survey results suggest worsening economic conditions," said Nayantara Hensel, chairwoman of the NABE outlook survey committee and professor of Industry and Business at the National Defense University in Washington. "The rising sales and profit margins experienced earlier in the year may have been short-lived."