Insert graphic here:
width: 175px
height: 64px
 |
|||||
 |
 |
 |
 |
 |
 |
|
For Immediate Release
BUSINESS EXECUTIVES REPORT IMPROVEMENT FOR THEIR FIRMS AND THE ECONOMY Energy commodities negatively affecting business
Connecticut businesses are reporting improved conditions for their firms and they expect the state and national economies to continue growing. But recent price fluctuations in energy commodities including oil, gas and electricity are having a negative affect on state companies. These are some of the key findings of the Connecticut Business & Industry Association’s (CBIA) Economic Survey for the first quarter of 2007, released today. For the first time in more than a year, business executives are reporting strong signs of growth for their firms. Forty-three percent of respondents said the outlook for their firms improved. That’s up from 25 percent last quarter. These are some of the strongest numbers reported in more than a year. Respondents are also reporting improvement in both the national and state economies. Nineteen percent expect the national economy to improve, up from 13 percent last quarter. Only 19 percent expect it to worsen, down from a high of 44 percent last year. There’s even more optimism about Connecticut’s economy. While only 8 percent say the state economy is improving, up from 7 percent last quarter; only 28 percent expect it to worsen. That’s down from a high of 40 percent last year and the lowest number reported in more than a year. Businesses are showing other signs of positive growth, with 35 percent increasing their workforce, up 7 percentage points from last quarter, and growing production/sales and productivity levels. "Company growth, including increases in workforce, production/sales and productivity, indicate that the economy is moving in the right direction,” said Jason Giulietti, CBIA research economist, “but there are still a number of issues that could turn the tide.” With recent volatility in the energy markets, respondents were asked how these price fluctuations were affecting their businesses. Fifty-three percent experienced a negative impact from the constant variances in the oil market. Sixty-four percent were negatively affected by the surge in gas prices. And an overwhelming majority, 81 percent of businesses, were negatively affected by the continued increases in electricity prices. "Some businesses reported 50 percent increases in their electric bills and if the volatility in the energy market continues, it could create an economic hardship in the business community that would have a direct impact on business growth, especially among small businesses,” said Giulietti. The survey was conducted in late February 2007. It has a margin of error of plus or minus 5.4 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
|
 |
© Copyright 2003 Connecticut Business & Industry Association, cbia.com. All rights reserved. |
 |
