Slumping Midwest biz confidence sees bright spot in Columbus

Business First of Columbus
08/04/2008

A gauge of Midwest business executives’ confidence in the economy slumped to its lowest point in the survey’s three-year history last month, though the outlook from Columbus business people improved, National City Corp. reported Monday.

Cleveland-based National City’s business confidence survey for July found 57 percent of those questioned were optimistic about economic and hiring trends, down from nearly 58 percent in June and 66 percent a year earlier. In Ohio, the hope was higher with nearly 60 percent of business managers optimistic about adding staff and the economy, up from 59 percent in June.

Richard DeKaser, National City’s chief economist, said rising energy prices likely were behind the comparative pessimism, even as business people in parts of the Midwest hit by flooding in June turned more bullish in July.

In Columbus, nearly 62 percent of executives surveyed showed optimism in July, up from 60 percent in June. Some 56 percent of surveyed managers said they were optimistic about economic trends, up from 54 percent in June, and 67 percent were upbeat about hiring plans, nearly unchanged from the month before.

The survey also found:

• Executives in the Cincinnati region showed the most confident collective outlook among Midwest cities surveyed, with nearly 64 percent upbeat about the future, versus 62.5 percent in June. Nearly 59 percent replied that the economy is improving, up from 55 percent in June, and 69 percent said they expect to add staff, compared with 70 percent the month before.
• Nearly 59 percent of Cleveland-area business managers said the were confident generally confident, up from 57.2 percent the month before. About 56 percent were optimistic about the economy, up from 54 percent in June, while nearly 62 percent said they are planning to boost payroll, up from 61 percent the month before.
• In Dayton, 62 percent were generally upbeat, up slightly from 61.5 percent in June. More than 57 percent of those surveyed were bullish on the economy, up from 54 percent in June. Expectations for staffing plans among those executives declined, with 67 percent planning to increase payroll, down from 69 percent in June.

National City (NYSE: NCC) conducts its monthly survey in Illinois, Indiana, Kentucky, Michigan, Missouri, Ohio and Pennsylvania.