D&B Survey Expects Trends to Continue In Second Quarter
NEW YORK -- Business in the second quarter is expected to maintain the recent trend of ebbing sales, stable prices and marginal profit gains, according to a new Dun & Bradstreet Corp. survey.</br></br>D&B's quarterly survey of business expectations indicates that "inflation isn't accelerating," said Joseph W. Duncan, corporate economist and chief statistician. And, he noted, "while sales optimism is at the lowest level since 1983, it remains well above the levels generally associated with impending recessions."</br></br>In the survey, conducted between Feb. 7 and Feb. 27, D&B asked 1,500 executives in manufacturing, wholesaling and retailing whether they expect increases, decreases or no change from their first-quarter sales, profits, prices, inventories, employment and new orders. The index in each case is the difference between those expecting an increase and those expecting a decrease.</br></br>While the sales outlook among manufacturers deteriorated, retailers expect higher sales in the second quarter, "underscoring the fact that consumers are now responsible for most of the current economic growth," Mr. Duncan said. The retailers' sales optimism index rose to 61 from 55 in the first quarter and 1989 fourth quarter.</br></br>He said sales optimism is strongest in the oil patch states of the West South Central region, while New England has the bleakest sales outlook. And virtually no employment growth is expected in New England in the next few months.