Business Optimism Index Reports Drop in Confidence
Location: Chicago
Author:
Amy Smolensky
Date: Wednesday, March 3, 2010
Grant Thornton LLP’s Business Optimism Index, a quarterly survey of U.S. business leaders, fell slightly to 58.8 in February (it was 60.4 in November 2009). Business leaders continue to feel uneasy about overall economic improvement, with only 43% expecting the economy to improve in the next six months, down from a 53% in November. At the same time, 49% now believe that the economy will not come out of the recession until 2011 or later, a figure that has more than doubled since November, when only 22% believed the recession would end in 2011 or later.
Business leaders’ view of their own businesses decreased slightly, with 74% feeling optimistic about their companies’ growth over the next six months, compared to 79% in November. At the same time, plans for staffing remained relatively flat, with 31% planning to increase staffing, compared to 30% in November and 18% planning to decrease staffing, which is unchanged since November.
| 2/2009 | 5/2009 | 8/2009 | 11/2009 | 2/2010 | ||||||
| OVERALL Business Optimism Index | 37.6 | 54.5 | 60.9 | 60.4 | 58.8 | |||||
| Believe U.S. economy will improve | 17% | 45% | 58% | 53% | 43% | |||||
| Believe U.S. economy will worsen | 49% | 13% | 7% | 13% | 12% | |||||
| Very or somewhat optimistic about own business | 43% | 62% | 73% | 79% | 74% | |||||
| Very or somewhat pessimistic about own business | 57% | 38% | 27% | 21% | 27% | |||||
| Plan to increase staff | 9% | 20% | 26% | 30% | 31% | |||||
| Plan to decrease staff | 45% | 30% | 18% | 18% | 18% | |||||
When do you think the economy will come out of recession?
| 11/2009 | 2/2010 | |||
| First half of 2010 | 23% | 12% | ||
| Second half of 2010 | 46% | 27% | ||
| 2011 | 19% | 37% | ||
| Later | 3% | 12% | ||
| The recession is over | n/a | 12% | ||
* Percentages may not total 100 due to rounding.
To subscribe or visit go to: http://www.riskcenter.com