Ohio business leaders are feeling better, but still not great, about the state of the economy and their own companies’ prospects, according to the Ohio Chamber of Commerce Research Foundation‘s second-quarter “Prosperity Pulse” survey.
The report, released Thursday, Aug. 27, produces an index that is calculated using a metric of five forward-looking economic factors. It’s based on responses from 404 state business leaders who were surveyed between July 20 and Aug. 13. A score of 100 reflects what business leaders see as average economic conditions.
The second-quarter index hit 93, indicating a below-average economic landscape, but representing huge improvement from 51 in the first quarter. Before that quarter, every quarterly survey dating back to 2017, when the chamber began issuing the report, listed the index at 100 or above.
“As Ohio’s economy has slowly churned back to life, the overall economic climate remains uncertain in the eyes of business leaders across the state,” said Justin Barnes, executive director of the Ohio Chamber Research Foundation, in a statement.
“Respondents to our survey have indicated they expect to see continued below-average economic conditions as government response to the COVID-19 pandemic continues to adapt, while they remain committed to seeing their companies through this difficult period,” he said.
Hiring plans among business leaders across Ohio rose dramatically, with 68% of respondents indicating they plan to increase their payrolls. That was double the 34% of respondents from the first-quarter report who planning to hire.
The construction industry reported seeing the best outlook for profits, with 50% of respondents in that sector expecting profits to increase quarter-over-quarter. Meanwhile, more than 90% of the manufacturing industry respondents were either “very” or “somewhat” concerned about the state of the economy.
Economic uncertainty was the primary area of concern in the Northwest, Northeast and Central Ohio regions of the state, the report found, while health care costs were the top issue in Southwest Ohio, and state regulations were the top concern in Southeast Ohio.
