Executives expect higher prices and rising employment levels.
The second-quarter survey of 3,000 business executives predicts very strong growth throughout the economy, as nearly every industry tracked by the survey forecasts increased sales and profits through the end of June. Executives also said they expect prices and employment levels to rise more quickly during the period. After more than a year of very stable expectations, business optimism has rapidly increased to a level comparable to the peak expectations set in 1994. In nearly every key industry, the proportion of firms that expect higher sales and profits is rising. Sixty-two percent expect higher net profits, compared to 56 percent in the first quarter.