The winter has ended and turned to spring, and many businesses across the country have seen rises in optimism and hiring alike in the recent months. The results may lead to growth in the economy in the near future, helping the market break into the new season.
Hiring expected to rise in future
According to the latest PNC Economic Outlook survey, about 22 percent of small and mid-sized businesses are planning to hire full-time employees in the spring. That's an increase of six points from the previous year. Another 37 percent of business owners reported feeling strong about their business prospects through the next few months. That optimism includes 55 percent expecting increased sales and another 41 percent hoping for higher profits, and those figures are also seeing increases from 2013.
A likely cause of recent stress on the economy was the harsh winter, according to Stuart Hoffman, the chief economist at the company. However, with temperatures rising across the country, businesses will likely increase their spending as the second quarter of the year begins.
Also of note was that many owners think the economy will soon increase heavily. About 64 percent of owners are at least moderately optimistic in the prospects of future growth, which is the highest figure seen since 2007.
March sees rise in hiring
That optimism is likely thanks to a positive result for hiring in the previous month. According to Fox Small Business, the latest ADP National Employment Report saw 191,000 new jobs added to the private sector in March, a rise of 13,000 from February. Of those, small businesses with less than 50 employees represented 72,000. That's down from average growth, which has been hovering around 83,000 jobs.
"The 191,000 U.S. private sector jobs added in March is slightly above the twelve-month average," said ADP president and CEO Carlos Rodriguez. "Hopefully, this could be a sign there is more growth to come."
Analysts said that if the recent growth continues to hover around similar figures in the near future, the long-term prospects for the market will begin looking better. Should a strong housing recovery accompany it, small businesses are expected to see even higher prospects.
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