Connecticut business people are confident enough in their own prospects but don’t see much economically to cheer about beyond their doors, the CBIA first-quarter survey shows.
Businesspeople are mixed about whether the state’s economy will improve or worsen and don’t expect the national economy to get better anytime soon, the Connecticut Bsuiness & Industry Association survey said Wednesday.
But the good news is that businesses expect improvements in their own firms, and performance indicators are up — both of which could lead to hiring, the survey found.
According to CBIA’s first-quarter 2011 economic survey, 37 percent of respondents said conditions will improve in their businesses, the highest number in a year. Only 17 percent expect conditions within their own firms to worsen, the lowest number in more than a year.
When it comes to the Connecticut’s economy, 21 percent expect improvements, the highest number in a year. However, nearly half (46 percent) say they expect the state’s economy to worsen. That’s up from 37 percent last quarter and 43 percent a year ago.
Thirty-seven percent of business respondents expect the national economy will improve, down from 45 percent last quarter and 42 percent a year ago.
“The economy is clearly impacting Connecticut businesses, but many are finding ways to be productive and grow despite the uncertainty both in the state and national economies,” says Peter M. Gioia, CBIA vice president and economist. “Because businesses are unsure about the economy, many still are reluctant to take risks, invest in their companies, and hire new employees.”
Only a handful of respondents said they will take the risks needed to grow their businesses. Fourteen percent plan to secure funding to expand in Connecticut by the end of the year, while 18 percent plan to do so by the end of 2012.
The survey was conducted by CBIA in March and April 2011. A total of 390 businesspeople responded, for a 14 percent response rate and a margin of error of plus or minus 5 percent.
