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For Immediate Release
CONNECTICUT COMPANIES CONTINUE GROWING DESPITE NATIONAL DOWNTURN
Connecticut businesses continue to grow at a steady rate despite economic volatility on the national level. According to the Connecticut Business & Industry Association's (CBIA) economic survey for the third quarter of 2007, more than half (51 percent) of business respondents expect the national economy to worsen, up from 25 percent in the second quarter and 19 percent in the first quarter. Only 9 percent of respondents expect the national economy to improve, while 40 percent expect it to remain stable. These are the lowest numbers reported for both categories in more than a year. Despite the concern about a faltering national economy, Connecticut businesses responding to the survey are more optimistic about their own firms and the outlook for their industry. Thirty-five percent expect their firms to improve, up from 31 percent last quarter, while a fifth (20 percent) expect conditions at their firms to worsen. Businesses are showing other signs of positive growth, with 27 percent increasing their workforce, up 2 percentage points from last quarter. "Despite the concern about the strength of the U.S. economy, Connecticut businesses are growing and adding jobs, as indicated in last month's record employment numbers,” said Jason Giulietti, CBIA research economist. “But there is still concern, especially with the national credit woes and mortgage crisis, which could further hurt the economy.” In light of the recent uneasiness about the subprime mortgage lending situation, respondents were asked if tighter credit conditions were affecting their businesses. Nearly three-quarters (73 percent) said no. Twenty-seven percent said yes; tighter credit conditions were affecting their businesses in the form of lost sales (65 percent), delays in business expansion (33 percent), the need to pay higher interest rates (32 percent), and decreased spending on purchasing and production (28 percent). "The good news is Connecticut hasn't been hit with the full severity of the credit crisis that's being felt in many other parts of the country. But if the volatility in the credit market continues, it could create an economic hardship for the state's business community, which would have a direct impact on economic growth, especially among small businesses,” said Giulietti. The survey was conducted in late August 2007. It has a margin of error of plus or minus 4 percent. CBIA is the state's largest business organization, with 10,000 members. ### Editor's Note: To arrange an interview with Jason Giulietti, please call Nancy Andrews at 860-244-1957. For a complete copy of the survey, visit www.cbia.com/newsroom. For more information contact Nancy Andrews, CBIA media relations manager, at 860-244-1957 or andrewsn@cbia.com. 350 Church
Street · Hartford, CT 06103-1126 · cbia.com/newsroom
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