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PNC business survey shows pessimism about economy
By Kalea Hall
YOUNGSTOWN
A survey of Ohio businesses by PNC Bank shows pessimism about the economy, but PNC Economist Mekael Teshome believes the results would be different if the survey were taken today.
The survey was conducted between Jan. 21 and March 3 when there was a concern of a recession in the air.
“A lot of that affected business’ sentiment,” Teshome said.
For the survey, 152 businesses were interviewed in Ohio.
The survey found small and midsize businesses are cautious about the next six months, but they are upbeat when it comes to making money. The survey found 48 percent of the business owners expect to see sales growth, and 40 percent expect to see an increase in profits.
Teshome noted a “silver lining” in the report with 9 percent of business owners expecting a decrease in profits compared with 18 percent of business owners who expected a decrease in profits in the fall of 2015.
“Ohio’s economy is moving ahead of the national economy,” Teshome said.
He foresees manufacturing, health care and professional services leading Ohio’s job growth with education, finance, leisure and hospitality expected to provide support.
Risks for Ohio’s economy include the weak global economy and a strong dollar that could hurt exports more than expected.
The survey also found: 12 percent of business owners plan to hire, which is down from 19 percent from last fall; 23 percent expect to increase wages, down from 36 percent in the fall; 38 percent say it is harder to find qualified employees; and 26 percent plan to charge higher prices, which is on par with 28 percent reported last fall.