Big Jump in Number of Bank Execs That Expect the Economy to Improve in Next Six Months

According to Grant Thornton LLP’s 17^th Bank Executive Survey, conducted in conjunction with Bank Director magazine, the majority of bankers are optimistic about the U.S. economy in the coming months, with 45 percent expecting it to improve in the next six months. This is a statistically significant improvement over how bankers felt about the U.S. economy six months ago when less than one-quarter (24%) said that they expected the economy to improve. On the job front, a quarter of bankers say that their bank will increase hiring in the next six months, up from 18 percent in December; while the number of banks that plan to decrease staff has dropped slightly to 16 percent from 18 percent in December.

“Their optimism about the economy is spilling over into their own banks, with bankers reporting that they are also cautiously optimistic about the number of people they expect to hire in the coming months. Overall, it appears that bankers believe that the economy has finally turned a corner.”

“Bankers across the country are starting to become more optimistic about both the U.S. economy and their own local economy,” noted John Ziegelbauer, national managing partner of Grant Thornton’s Financial Institutions practice. “Their optimism about the economy is spilling over into their own banks, with bankers reporting that they are also cautiously optimistic about the number of people they expect to hire in the coming months. Overall, it appears that bankers believe that the economy has finally turned a corner.”

In addition, more than one-third (35%) of bankers expect their local economy to improve in the next six months, up from 22 percent in December 2009. Only nine percent of bankers expect their local economy to get worse, down from 18 percent in December.

Do you feel that the U.S. economy will improve / remain the same / get worse in the next six months?

Do you feel that your local economy will improve / remain the same / get worse in the next six months?*

Do you expect the number of people you employ at your bank to increase / remain the same / decrease in the next six months?*

* Percentages may not total 100 due to rounding.