Business Optimism Index Returns to Pre-Crisis Level

Location: Chicago
Author: Kristi Grgeta
Date: Thursday, June 3, 2010

Grant Thornton LLP’s Business Optimism Index, a quarterly survey of U.S. business leaders, increased significantly to 67.6 in May from 58.8 in February. Business leaders are becoming much more optimistic, with 63 percent expecting the U.S. economy to improve in the next six months, up from 43 percent in February. The hiring outlook is the best it has been since 2007 – 44 percent of business leaders report that their companies will increase hiring in the next six months, with only 12 percent saying that their companies will decrease the number of people they employ.

Business leaders’ view of their own businesses also improved, with 87 percent feeling optimistic about their companies’ growth over the next six months, compared with 74 percent in February.

With regard to the recession, a quarter (24%) think that it will end in 2010, while nearly half (48%) say it will take until some time in 2011 for the economy to come out of recession. One out of six executives (16%) says that the recession is already over.


	2/2009	5/2009	8/2009	11/2009	2/2010	5/2010
OVERALL Business Optimism Index	37.6	54.5	60.9	60.4	58.8	67.6
Believe U.S. economy will improve	17%	45%	58%	53%	43%	63%
Believe U.S. economy will worsen	49%	13%	7%	13%	12%	6%
Very or somewhat optimistic about own business	43%	62%	73%	79%	74%	87%
Very or somewhat pessimistic about own business	57%	38%	27%	21%	27%	13%
Plan to increase staff	9%	20%	26%	30%	31%	44%
Plan to decrease staff	45%	30%	18%	18%	18%	12%

When do you think the economy will come out of recession?

	11/2009	2/2010	5/2010
Before the end of 2009	10%	n/a	n/a
First half of 2010	23%	12%	n/a
Second half of 2010	46%	27%	24%
2011	19%	37%	48%
Later	3%	12%	12%
The recession is over	n/a	12%	16%

* Percentages may not total 100 due to rounding.

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