Earlier we reported on the latest Philly Fed manufacturing survey, which showed that business still sees improvement, though perhaps not quite at the pace that analysts had expected.
In the survey, they asked some special supplemental questions to businesses, asking them why they were either hiring or not hiring.
The survey response is pretty clear: What matters to businesses when hiring is sales, sales, sales, and more sales. Uncertainty/policy/taxes/regulation is down the list on why they’re either hiring or not.
Now this is the same thing we learned (basically) in a similar survey held by the Empire Fed, but the link between sales and hiring is so crucial, and so misunderstood that we can’t emphasise it enough, and have no intention to stop pointing it out.