Zions' executive survey takes a turn toward optimism

Zions' executive survey takes a turn toward optimism

By Lois M. Collins, Deseret News
Published: Tuesday, May 26, 2009 10:04 p.m. MDT

Utah business executives are feeling more optimistic about their companies's financial futures — the first improvement in what has been an increasingly gloomy past two years.

That's according to a survey of Utah bosses conducted by Dan Jones & Associates for the latest Zions Bank Quarterly Economic Forecast, released Tuesday. It looks at the state's economy through the eyes of business executives. Zions has a pool of 1,169 executives it surveys, and several hundred of them respond for each quarterly report.

More than 40 percent said this may even be the time for entrepreneurs to start a business in Utah, taking baby steps and testing along the way, while about one-fourth see an opportunity to take advantage of the current market opportunities, including a broader pool of potential employees.

"It is a better place to do business than most anywhere else," wrote one executive. "This is an available, trained work force, and the state is very supportive of growth."

Added another, "I would say that if I were to start a business, today would be the time. Start out slow, and run with the economic rebound."

The current mean score of those surveyed is 6.22, which rates out as "somewhat optimistic," compared to the 7.87 standard that was set when the surveying began in 2006. The low point was last quarter, at 5.86. While the new score is below that of most quarters, the increase represents an 18 percent recovery of the points lost and marks the first move upward following a long line of declines.

"Somewhat better" or "much better" is the prediction for economic health that 41 percent of the executives made about their companies, while only 18 percent believe things will get worse to some degree. The same percentage of optimists, 41 percent, believe that government efforts to stabilize the economy will help their businesses, while 32 percent believe it will harm them.

The vast majority — 78 percent — are optimistic about the long-term financial future of their businesses.

The top concern remains the cost of employee health insurance — 5.26 on a scale of 1 to 7. That has remained either No. 1 or No. 2 in every survey.

The full report for first quarter 2009 is online at utaheconomicforecast.com.

E-MAIL: lois@desnews.com
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