More belt-tightening by Connecticut businesses could mean a longer road back to the state’s economic recovery, according to the results of the CBIA/BlumShapiro 2010 Survey of Connecticut Businesses.
Despite what economists say is a slowly improving economy, most Connecticut businesses describe current conditions as below average, and they don’t expect their companies to fully recover until sometime in 2011 or 2012.
The main culprits behind the sluggish forecast, say business leaders, are uncertainties in the national and state economies, Connecticut’s state budget deficits, and the potential for tax increases.
What’s more, poor sales have topped the list as the single greatest challenge to operating a business in the state. Potential tax increases worry businesses, and over the next 12 months those concerns are expected to escalate.
Sixteen percent of respondents said tax hikes are their single greatest concern over the next three years, and 38% of respondents cited the personal income tax as the most significant tax concern related to doing business in Connecticut. That was followed by the property tax on real estate (27%) and the corporate income tax (16%).
Business respondents believe their individual companies are faring better than their industry as a whole. About a quarter of respondents say current conditions for their business are good or excellent, and 31% expect that to be the case in a year.
Just 10% of respondents expect their companies to recover from the recession this year, and only a third more expect recovery sometime next year.
For more information, contact CBIA’s Pete Gioia at 860.244.1945 or firstname.lastname@example.org.