The Importance Of Revenue Growth To Hiring

Last Thursday, the Philadelphia Federal Reserve released the May 2012 Business Outlook Survey.

One aspect I found particularly notable was a chart indicating responses to "Factors Restraining Hiring."  As indicated, the foremost response was "Expected growth of sales is low."

In various blog posts - including the April 24 post titled "The Unemployment Situation Facing The United States" - I have commented upon the lagging nature of corporate revenue growth, and how corporate revenue growth appears to be a notable driver of hiring, or lack thereof.

The responses from the May 2012 Business Outlook Survey is yet another confirmation that (expected) revenue growth is a major factor for hiring.  This relationship appears to lack widespread recognition.

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The Special Note summarizes my overall thoughts about our economic situation

SPX at 1318.86 as this post is written