BUSINESS OWNERS PROCEED WITH CAUTION: OUTLOOK BRIGHTENS ON SALES AND HIRING, BUT HIGHER COSTS FORCE PRICE HIKES

by Ms. Amanda Rittenhouse of PNC

Posted to Announcement on 4/1/2011 at 9:17 PM

PNC Survey Findings Support ‘Self-Sustaining’ Expansion That Won’t Be Derailed By Energy Prices, European Debt or Disaster in Japan

PITTSBURGH, March 31, 2011 – One out of two U.S. small business owners expect increased sales in the next six months, but rising non-labor costs threaten to squeeze profits and result in higher selling prices over the same period, according to the PNC Economic Outlook survey’s newest findings.

The spring findings of PNC’s biannual survey, which began in 2003, show owners’ expectations for sales and profits have rebounded from unexpected setbacks last fall along with a brighter outlook for hiring full-time employees. However, 64 percent foresee higher non-labor costs, which will prompt owners to raise prices in an effort to preserve profit margins.

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