Business basically bullish for next three months
A new survey of Connecticut Business & Industry Association members finds almost half expect business conditions to remain stable, while almost a third anticipate improvement over the next three months.
In the near-term, though, credit could begin to tighten, according to one index that tracks credit conditions in Connecticut.
The 2016 CBIA/Farmington Bank 1st Quarter Economic and Credit Availability Survey found 87 percent of respondents expect their workforce to remain stable or increase, unchanged from last quarter. “Business owners will only invest and create jobs if they feel business conditions are stable,” said CBIA economist Pete Gioia in a statement.
When asked how likely they thought the U.S. would go into recession in 2016, 53 percent answered highly unlikely or unlikely, while 35 percent felt it was likely or highly likely.
“We are clearly starting to see cracks in our economic recovery, but recession is not a foregone conclusion,” said DataCore Partners' Don Klepper-Smith.
The Farmington Bank Credit Availability Index (FBCAI) is a diffusion index that speaks to the health of Connecticut’s credit markets. This quarter, the FBCAI was 51.7, down 25 percent from one year ago, reflecting concerns about future credit conditions.
The survey also found:
- 61 percent of businesses are making capital investments, mainly to improve production or sales (54 percent), trim operational costs (45 percent), and invest in technology (40 percent);
- 88 percent report credit availability is not a problem; 95 percent have had no changes in lending terms;
- One-fourth describe Connecticut’s lending climate as good or excellent, while 56 percent consider it average; and,
- 93 percent were able to fully or partially meet borrowing needs over the last three months.
- The survey was emailed to 1,800 Connecticut business leaders in April 2016. A total of 202 responded, for an estimated response rate of 11.2 percent and a margin of error of +/- 7 percent.
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