Newsline

Conditions Scrutinized

February 11, 2008
/ Print / Reprints /
ShareMore
/ Text Size+

WASHINGTON - The National Association for Business Economics’ (NABE’s) January report presents the responses of 98 NABE members surveyed about business conditions in their firm or industry conducted Dec. 13-Jan. 9. The survey also reflects fourth-quarter 2007 results and the near-term outlook.

NABE asked the following:

• How did business activity by sector in the third quarter compare to the second quarter? What lies ahead?

• Are costs for material inputs and labor still rising? Are firms achieving price and/or profit increases?

• Are hiring and capital spending still rising? What is the outlook for the coming 6-12 months?

• Will the housing bust continue? Will it have a widespread impact on other sectors?

• How are tightening credit conditions affecting businesses?

• How has the decline in the dollar affected businesses and what are their expectations for 2008?

“The January NABE Industry Survey shows a striking dichotomy,” said Ken Simonson, chief economist, Associated General Contractors of America (AGC).

“Compared to the October survey, respondents are much gloomier about the outlook for the economy as a whole but are more upbeat about their own firms’ pricing, capital spending, and hiring plans. Although nearly all panelists expect the housing slowdown to continue, fewer than [those participating] in October expect their business to be affected. Neither tight credit conditions nor the decline of the dollar has affected most respondents.

“For the 18th consecutive quarter, there were more panelists reporting rising profit margins than falling margins, even though slightly fewer firms raised prices last quarter and cost pressures for materials and wages remained steady.”

According to Simonson’s view of the report, tight credit market conditions appear to be having a more limited effect on the economy compared with the October survey.

Two-thirds of respondents stated that tightening credit conditions have not affected their business, while just over a quarter reported negative effects. Just under half of the respondents expect a further substantial slowdown in housing markets, and only 3 percent do not expect any further slowdown. Fewer respondents in January (42 percent) than in October (51 percent) felt that a slowdown, mild or severe, would have an effect on their business.

For more information, visit www.nabe.com.

Publication date: 02/11/2008

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

Mini Split Installation

Twin Cities contractor Aabott Ferraro helped retrofit an older St. Paul home.

Podcasts

NEWSMakers: Jeff Nusz

Jeff Nusz, president, Reitmeier HVAC Services, Tualatin, Oregon, joins the program to discuss how he modernized his website and gained new clients and more money because of it. We’ll go through the process of the change and much more.  Posted on Aug. 1.

More Podcasts

ACHRNEWS

NEWS 07-28-14 cover

2014 July 28

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

R-22 PHASEOUT POLL

Some in the industry are calling for the EPA to halt production of R-22 as of 2015. What do you think?
View Results Poll Archive

HVACR INDUSTRY STORE

plumbing-hvac.gif
2014 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research

 

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

DON'T MISS A THING

Magazine image
 
Register today for complete access to ACHRNews.com. Get full access to the latest features, Extra Edition, and more.

STAY CONNECTED

facebook icontwitter iconyoutube iconLinkedIn i con