SALT LAKE CITY -- Utah executives' optimism about the financial futures of their companies continues to gain ground, according to Zions Bank's latest Utah Quarterly Economic Forecast. Conducted by independent research firm Dan Jones & Associates, the Zions Bank Utah Quarterly Economic Forecast has gauged the health of state's economy from the perspective of high-level Utah executives since 2006.
In the first quarter 2010 study, 46 percent of Utah business leaders predict their companies' economic health will be "somewhat better" or "much better" in the upcoming quarter. This is nine percentage points higher than last quarter, when 37 percent of respondents forecasted better health for their companies.
Attitudes about the financial future have grown more optimistic in the latest quarter to a current mean ranking of 6.46 on a 10-point scale (with 1 indicating "very pessimistic" and 10 "very optimistic").
One-third of panelists (32 percent) predict that their workforces will "increase somewhat" or "increase greatly" in the upcoming quarter. This is 15 percentage points higher than the study low of 17 percent in fourth quarter of 2008, but still 19 points lower than the high of 51 percent in the second quarter of 2006.
A majority of business leaders in Utah reveal that their participation in outside business activities like conferences, trade shows and outside training has decreased in the last 12 months. Many are staying in their businesses, devoting energies to "working smarter" by adjusting the workforce, using resources more efficiently, cutting out waste and controlling costs.
"We have increased our focus on lean. We are constantly learning new ways to get more done with less. This economic downturn has taught us many good lessons," said one panelist in the survey.
The full 43-page report of the first quarter 2010 Zions Bank Utah Quarterly Economic Forecast can be viewed at https://utaheconomicforecast.com. Following are additional highlights from the latest study:
* Twenty-four percent of business leaders anticipate capital spending will be "somewhat more" or "much more" in the upcoming quarter than it was in the previous one.
* Three-quarters of Utah executives feel that supporting local businesses is important to Utah's economy, split fairly equally between "somewhat important" (36 percent) and "very important" (39 percent).
As it has been for six consecutive quarters, the cost of employee health insurance is again the top concern among Utah executives, followed by gasoline prices, the impact of inflation on the cost to do business and the cost of salaries and wages.
"The panelists' rise in optimism and anticipated workforce growth combine to reflect a cautious feeling that there may be a light at the end of the recession's tunnel," said Pat Jones of Dan Jones & Associates.
In 2006, 1,169 business executives were recruited to form the study panel and to complete quarterly surveys. Business owners and high-level executives may join the panel to share their confidential views on the economy. More information is at https://utaheconomicforecast.com.
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