Connecticut businesses are a bit more optimistic about Connecticut’s economy, with more companies projecting better conditions this year. They’re also bullish about a Donald Trump presidency helping business conditions, according to a new survey.
According to the 2016 CBIA/Farmington Bank 4th Quarter Economic and Credit Availability Survey, 40 percent of the 173 business leaders who responded to the survey — about 69 of them — expect improved conditions for their firms, an increase of 14 percent compared to the previous quarter.
The number of business leaders with a negative outlook dropped three percentage points to 21 percent, while 39 percent — 10 percent fewer than in the third quarter — expect stable conditions.
Meantime, 24 percent of business leaders plan to add staffing, compared to 19 percent a year earlier, while 11 percent said they plan to reduce their workforce.
“It’s heartening to see the jump upwards in those expecting better conditions for the economy, their own company, and hiring,” says CBIA economist Pete Gioia.
The email survey was conducted in mid-January and early February following the state and presidential elections.
Asked about the possible impact of President Donald Trump’s administration on growth, 59 percent were bullish, 25 percent uncertain, 6 percent saw no impact and 10 percent expected negative consequences.
DataCore Partners economist Don Klepper-Smith said Connecticut’s sluggish post-recession job growth continues to be a concern in Connecticut, with the state losing 2,000 jobs in 2016 based on preliminary reports.
But nationally, he believes the U.S. economy is poised for GDP growth in the 2 percent to 2.5 percent range this year, although he confided “the risk of policy error is growing.”
“The outlook for 2017 is clouded with uncertainty, but will be a function of proposed tax cuts, emerging trade policies, proposed spending on national infrastructure, and proposed rollbacks on federal government regulations, which hopefully will seek to spur new business investments,” he said.
The survey had 173 total responses for a 7.5 percent response rate, with a margin of error of +/- 7.5 percent.
