Almost 90% of Connecticut business leaders anticipate continued modest growth in their businesses this year, according to a survey released today.
The 2015 CBIA/Farmington Bank 4th Quarter Economic and Credit Availability Survey found nearly 87% of respondents expect their workforce to remain stable or increase, up from 83% last quarter.
Similarly, 87% reported being able to satisfy all their borrowing needs, up from 79% last quarter. More than a quarter (27%) reported their business using earnings to finance operations, up from 11% last quarter.
“These are some of the most encouraging signs that the economy is turning around,” said CBIA economist Peter Gioia.
“They are significant because investment, the ability to get and meet capital needs, sustains that expected employment boost.”
The survey also found:
- 62% of respondents are making capital investments, mainly to improve production or sales, trim operational costs, and invest in technology
- 83% report credit availability is not a problem; 94% have had no changes in lending terms
- 31% describe the Connecticut lending climate as good or excellent, while 50% consider it average
- 94% were able to fully or partially meet borrowing needs over the last 3 months
- 69% own their firm’s building or real estate in Connecticut
The Farmington Bank Credit Availability Index (FBCAI) is a diffusion index that speaks to the health of Connecticut’s credit markets. This quarter, the FBCAI showed improvement in current conditions and future expectations with a rating of 64.2, up from 61.1 last quarter.
“This survey and the credit index indicate that many are feeling confidence that business will start to pick up,” said John Patrick, Jr., chairman, president, and CEO of Farmington Bank.
“As business owners begin to feel confident in the state economy, banks are ready to lend and help businesses expand and grow.”
This survey was distributed prior to General Electric’s announcement about leaving Connecticut.
The 2015 CBIA/Farmington Bank 4th Quarter Economic and Credit Availability Survey was emailed to 1,750 Connecticut business leaders in December 2015 and January 2016. A total of 175 responded, for a 10% response rate and a margin of error of +/- 7.5%.
CBIA is Connecticut’s largest business organization, with thousands of member companies, small and large, representing a diverse range of industries from every part of the state. For more information, please email or call Meaghan MacDonald (860.244.1957).