The National Association for Business Economics’ October 2016 business conditions survey indicates employment conditions moderated in the fourth quarter as 61% of respondents indicated hiring at their firms was unchanged in the fourth quarter of 2016. Expectations for employment in the next three months are roughly unchanged from those in the October survey.

The report also found that despite indications of slower wage growth at the end of 2016, expectations for wage increases over the next three months are notably stronger than in recent surveys. Fifty-nine percent of respondents expect wages to rise over the next three months, a 19-percentage-point increase from the share reporting wage increases in the past three months, and a slightly larger percentage from one year ago. This strong uptick pushed the NRI up to 56, its highest level since the question was first asked in the July 2014 survey.

“The results of the most recent NABE Business Conditions Survey suggest a fairly robust business environment in the final months of 2016,” said NABE President Stuart Mackintosh, executive director, Group of Thirty.

“Although profit margins remained flat, sales growth is becoming more widespread, and firms expect to achieve higher margins in the first quarter of 2017 through firmer pricing for their products and services” Mackintosh said. “At the same time, materials cost pressures also appear to be increasing. Panelists also raised their expectations for economic growth by a fairly substantial margin, with just over two-thirds now expecting GDP growth above 2% in 2017.”

The share of respondents reporting rising employment at their firms over the past three months fell to 27% from 32% in the October survey, while the share reporting a decrease in employment also fell to 11% from 15% in the same survey three months ago. Those reporting no change in employment in the past three months rose to 61% from 52%.

The share of respondents who anticipate their firms will add workers in the next quarter fell to 30% in January from 33% in the October survey, while the share expecting job reductions edged down to 14% from 16%. This results in a net rising index of 17, unchanged from October’s index consistent with readings over the last 12 months.

The survey also asked panelists if their firms delayed or altered any hiring or investments in anticipation of potential changes in US economic policy following the results of the November 2016 election; the majority of firms across all sectors have made no changes to hiring or investment decisions since the November 2016 election. Fifteen percent of panelists from firms overall, and 23% of those from firms with 100 or fewer employees, report delays in hiring or investment decisions as a result of the election. An additional 4% of panelists, regardless of firm size, and 8% of those from smaller firms reported that their firms redirected hiring or investment decisions until after the US. election.

NABE is a professional association for business economists and others who use economics in the workplace. The survey included 102 NABE members and was conducted between Dec. 22 and Jan. 11.