The National Association for Business Economics released a survey of its members today that showed more companies planning to add jobs than cut jobs, for the first time since December 2007. For the first time since October of 2008, more member companies increased capital spending last quarter than cut it. Two other important trends in the report may indicate the rationale for the optimism. Although material prices rose last quarter, prices increased by a larger margin, allowing for larger profits. Perhaps more importantly, credit is starting to loosen up, although the cost of borrowing money remains high.
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