A survey of Sacramento Metro Chamber members for the first half of 2010 shows that the region’s businesspeople are sustaining themselves and believe that economic conditions will improve next year.
Two-thirds of the survey respondents cited the perception of a weak business climate and the state’s ongoing budget crisis as the key issues impacting the economy right now.
“The uncertain business climate created by negative headlines and the lack of a state budget make it hard for businesses to plan for the future,” said Matt Mahood, president & CEO.
With more than 10 percent of members responding, the Metro Chamber’s survey on the economy found that businesses seem to be sustaining themselves by making wise decisions that keep their doors open while eliminating risk, Mahood said.
Five key findings were:
• There was about a 50-50 split between those business whose profits were static or up and those whose profits had declined in the first half of the year.
• Two-thirds were planning on maintaining their current employment levels over the next six months.
• More than half said business conditions were “fair.”
• Fewer businesses than last year were planning on delaying capital expenditures.
• Nearly two-thirds saw no change in business conditions, but nearly half said they would improve next year.
An added question for the 2010 survey asked members about their own personal finances. Nearly two-thirds reported delaying purchases of durable goods (excluding autos) while 30 percent said they delayed purchasing an auto.
“The upside of these reports on delays in purchases means that there is a growing future demand for goods in our economy,” Mahood said.
