How Business Confidence can Drive Real Growth

by Laura Ehrenberg-Chesler on July 25, 2018

in capitalism,Earnings,Economic Indicators

From the New York Times this morning:

“The confidence is rooted only partly in hard-nosed data, like the rapid pace of growth expected for the second quarter and record low jobless rates. It is also a sign of harder-to-measure sentiment. “Animal spirits are high,” said Tim Ryan, United States chairman of the global accounting and consulting firm PwC, referring to the gut feelings and impulses that can drive economies to elation or despair.

“Business leaders who complained that they sometimes felt vilified as engineers of inequality — or greedy exploiters — now say they are pleased to be viewed as part of the solution, creating jobs and wealth. “They feel good about themselves, like they are the good guys,” Mr. Ryan said, describing comments from hundreds of chief executives to his firm over the past quarter. “They are sitting up a little straighter in the chair.”

“The optimism index of the National Federation of Independent Business is in the 99th percentile, an “astounding” number, according to the group’s president, Juanita Duggan. At the start of this week, nearly nine out of 10 companies in the Standard & Poor’s 500-stock index reporting earnings so far had beat expectations.”

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