As concerns grow over the state’s budget stalemate, fewer Connecticut businesses expect growth, according to the latest CBIA Economic and Credit Availability Survey.
With 127 business leaders responding, the second quarter survey found that just 29 percent of them have a positive outlook for their firm — down from 37 percent in the first quarter.
Fifty-seven percent expect stable conditions, however, (up from 47 percent in the last quarter), while 14 percent had a negative outlook, down from 16 percent.
Fewer businesses plan to increase their workforce (23 percent compared to 26 percent in the first quarter), while 66 percent forecast no change (the same as previously). About 12 percent plan reductions compared to 8 percent in the last quarter, surveyors found.
“The survey is indicative of an economy that is growing, just quite slowly,” said CBIA economist Pete Gioia. “However, it’s clear that as the budget stalemate continues, more and more businesses are avoiding making major investments until they see signs of predictability and stability. That means a budget with no tax hikes — sooner rather than later.”
DataCore economist Don Klepper-Smith said the survey highlights how critical the outcome of budget negotiations will be for the state’s economy and job growth.
“Importantly, businesses are looking for state finances to reflect some degree of fiscal discipline before they make big long-term commitments in-state,” he said.
