Subscribe to Breaking News emails

You have successfully subscribed to the Breaking News email.

Subscribe today to be the first to to know about breaking news and special reports.

As Small Businesses' Confidence Rises, So May Wages

/ Source: CNBC.com

Breaking News Emails

Get breaking news alerts and special reports. The news and stories that matter, delivered weekday mornings.

Main Street plans to boost wages and raise prices, a new survey shows. More small- and mid-sized U.S. business owners plan to raise salaries, according to the fall PNC Economic Outlook Survey findings, released Thursday. About 38 percent of business owners surveyed said they expect to increase employee compensation in the next six months—the most since 2008, when the financial crisis struck.

The survey also found 38 percent of business owners surveyed plan to hike prices during the next year. While some of that strategy can be attributed to hedging against anticipated higher costs that include health care, the price hike is also about optimism. "Some of this is health-care cost related, but they also feel business is improving," PNC's Chief Economist Stuart Hoffman told CNBC. "They are also planning on pay raises, so their labor costs will also go up." Besides cost pressures, Hoffman said small companies overall feel demand and the economy are improving, so they can afford to raise prices without losing business.

Breaking News Emails

Get breaking news alerts and special reports. The news and stories that matter, delivered weekday mornings.

Breaking News Emails

Get breaking news alerts and special reports. The news and stories that matter, delivered weekday mornings.
MORE FROM news

Have feedback?

How likely are you to recommend nbcnews.com to a friend or colleague?

0 = Very unlikely
10 = Very likely
Please select answer

Is your feedback about:

Please select answer

Thank you!

Your feedback has been sent out. Please enjoy more of our content.

We appreciate your help making nbcnews.com a better place.