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It's no wonder there's bad news on the jobs front in the day and -- -- July industry survey only 20% of firms polled indicate they plan to add staff in the next six months.
That -- -- 16% drop from three months ago.
Joining us now doctor nine car pencil chair of the NE -- Industry survey committee.
Okay first why I mean is it because of all this the fiscal -- the uncertainty now these fiscal scandals I guess you could say.
Small it is business -- general don't wanna hire.
I think absolutely that is the case right now you're seeing a lot of caution on the part of firms.
About two thirds of our panelists reported unchanged employment relative to our last survey in April.
Can only about a fifth of them reported rising employment when they look down the road six months absolutely.
Only 23% expected rising employment.
Which is down.
From the 39% in the last survey the believe this.
And you know our panelists were very concerned about the impact of the European crisis potentially on their sales.
And concerns that this European crisis is deepening.
Of our panelists.
Indicated that there -- -- -- fallen over the last three months due to the European crisis.
And moreover a lot of our panelists were very concerned.
About the bush tax cuts expiring in December.
And the government spending.
Cuts happening in early January a mean 65% of our panel of forecasts that if that scenario happened.
You know sales -- gonna fallen 15% suggested sales would fall by more than 10%.
And you wonder I was listening -- -- know.
Why -- we do anything about this right -- also down though that profit margins were married to right at one point they were getting better.
Is because it was a materials are going up and things like that.
That's part of it yeah.
Basically what we saw in the survey is that about 29% of our panelists reported rising profit margins and that's down from 40% in the last survey and about 39% of our panelists reported rising sales.
Which is down from 60% of the panelists in the last survey.
And some of the reason is because I think consumers right now are very cautious they're really not sure about the shape of things to come they're less likely to buy.
And also we do cover several different sectors in the economy one of which is manufacturing.
And and we called the goods producing sector and that's a sector where about 29% of our panelists reported rising materials costs and some of that may.
May be -- materials costs and some of that may be due to China's slowdown.
Section nine parents -- of the NAHB.
Thank you very much.
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