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Business owners optimistic about economy
By Kalea Hall
YOUNGSTOWN
Ohio business owners are more optimistic about the economy today than they have been in eight years.
That’s according to a recent survey done by PNC Bank of 150 owners of various small and midsize businesses.
The PNC Economic Outlook shows more than half of Ohio business owners plan to see an increase in their sales over the next six months, half expect to see an increase in their profits and about 3 out of 10 business owners expect to increase full-time hiring.
Business owners also are optimistic about the economy at the national and local levels.
Mekael Teshome, PNC Bank economist, explained the optimism is driven partially by the noticeable improvement in the economy.
“That has taken a long time,” Teshome said. “Even with the ups and downs in GDP [gross domestic product] growth, we continue to chug along.”
Gross domestic product is a monetary measure of the market value of all final goods and services produced in a period – quarterly or yearly.
During the first quarter, the U.S. economy grew at a 0.7 percent annual rate, according to the GDP report recently released by the Commerce Department.
“The overall number itself was a weak number,” Teshome said. “It didn’t actually surprise us too much. We have had these soft first quarters for a number of years.”
PNC economists still see the economy as strengthening and predict persistent moderate growth.
Business owners are also optimistic because of the possibility in the change of policies, especially tax reform, but also the repealing or replacing of the Affordable Care Act, investments in infrastructure and reduction in environmental regulations.
Nationally, business owners are more optimistic about the economy than they have been in 15 years.
PNC interviewed 500 national business owners and found 62 percent of business owners expect to see an increase in sales, more than half plan to have profits increase and more than a quarter expect to increase full-time hiring.
“The real economy is improving, but optimism is skyrocketing a lot higher, and there might be a convergence to match the political and economic realities,” Teshome said. “The real economy is improving, but perhaps the policy changes may take longer.”