NFIB Members Didn’t Hire – Bet They Will.
The National Federation of Independent Business updated their index, revealing two numbers of particular interest to us:
In September, the employment numbers fell and the capital spending plans rose. (Remember, it was late September that I admitted all my indicators had turned strangely negative.)
Since September, after NFIB’s numbers were collected, financial indicators have visibly turned up.
Interesting to me: I can totally understand that companies don’t want to add to payrolls, knowing that the government could jack up benefits costs to frightening levels. Much better to invest in automated equipment that will do its work without a gang of politicians on the sideline.
I’m particularly OK with this strategy, since my work is almost exclusively performed for companies that automate things. So far, so good.
But, if companies would rather buy equipment than hire people, doesn’t it stand to reason that the companies that create and install this equipment will have to hire? And when the equipment is delivered, won’t those companies receiving the equipment also need to hire, just to keep up with the new production?
Inventories are low. Production is almost guaranteed to kick in. Retailers are reporting better numbers across the board.
RECRUITERS VIEW: Same tune. Nobody wants to hire. Everybody will have to hire.