Almost half (47%) of Connecticut business executives expect their firms to remain stable while 35% expect improvement, according to the CBIA/Farmington Bank 3rd Quarter Economic and Credit Availability Survey.
This survey also found that only 27% of businesses feel the current lending climate is good or excellent. Half of those surveyed feel the climate is average.
"Credit, and its availability, is incredibly important to Connecticut businesses," said Peter Gioia, CBIA economist and vice president.
"It stimulates growthnot only in the terms of business purchasing power and equipmentbut also in hiring and inventories."
While only 34% of respondents used financing to meet credit needs in the last quarter, the majority of these firms had no problem with availability.
"As companies seek to expand, credit will facilitate rather than hinder growth," said Gioia.
The majority of Connecticut businesses seeking financing in the last three months tapped credit in four primary areasbank loans, line of credit, credit cards, and vendor credit.
"As Connecticut companies find themselves ready to invest and expand, lending institutions such as Farmington Bank are here to answer that call," said John Patrick, Jr. CEO and president of Farmington Bank.
For those making investments in their business over the next year, the survey finds that production or sales increases, technology, and operational cost reductions are the biggest priorities.
Don Klepper-Smith, chief economist and director of research at Datacore Partners, LLC, discussed the survey findings here.
CBIA/Farmington Bank 3rd Quarter Economic and Credit Availability Survey was emailed to 2,000 Connecticut business leaders in October 2014. A total of 186 responded, for a 9.3% response rate and a margin of error of 7.3%.
The survey is sponsored by Farmington Bank, Datacore Partners, LLC, and CBIA.
CBIA is Connecticut's largest business organization, with 10,000 member companies. For more information, please contact Meaghan MacDonald (860.244.1957; email@example.com) or visit the CBIA Newsroom.