The April survey showed that 60 percent of the businesses, the most in a year, said their sales were rising. In January, 41 percent said demand was climbing. Some 83 percent of manufacturers surveyed said sales were increasing, indicating the industry is still powering the economy.

Thirty-nine percent of all companies surveyed from March 20 to April 10 projected job gains in the next six months. Eleven percent said employment will drop because of attrition, which suggests the labor market outlook may be more optimistic since such declines often occur when an employee is confident about finding another job, the report said.

Profit margins are also improving at more companies, with 40 percent, the most in a year, saying earnings were increasing. In the January survey, 30 percent reported rising margins.

Companies indicated in the latest survey that materials costs may be less of a concern. Some 37 percent said input prices were rising. While up from 31 percent in January, the share is less than the 69 percent who said in July that materials were getting more expensive.

Cheaper costs may help explain why 66 percent expect no change in their prices in the next three months. Six percent, twice as many as in January, said they will fall 5 percent or less.

Fifty-five NABE members responded to the survey, which has been conducted quarterly since 1982. The National Association for Business Economics, founded in 1959, is the professional organization for people who use economics in their work.

Bloomberg News

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