We’re always looking for ways that policy makers can better understand the needs of the business community, especially as we look to climb our way out of this recession. While we’re hopeful that we are on the way out, there are some indications that have folks worried. Is that the case? How can local businesses try to get themselves in better financial shape? What can policy makers do to help the business environment? Those are some important questions that we hope will be answered at CBIA’s ”The Connecticut Economy” conference on September 10th at the Rocky Hill Marriott. To learn more click here!
Archive for August, 2010
Jobs and the Recovery – Top Issues CBIA's Connecticut Economy Conference
Thursday, August 26th, 2010Jobs and the Recovery – Top Issues CBIA’s Connecticut Economy Conference
Thursday, August 26th, 2010We’re always looking for ways that policy makers can better understand the needs of the business community, especially as we look to climb our way out of this recession. While we’re hopeful that we are on the way out, there are some indications that have folks worried. Is that the case? How can local businesses try to get themselves in better financial shape? What can policy makers do to help the business environment? Those are some important questions that we hope will be answered at CBIA’s ”The Connecticut Economy” conference on September 10th at the Rocky Hill Marriott. To learn more click here!
CT Inc. gloomier on the economy
Thursday, August 26th, 2010Connecticut entrpreneurs have grown gloomier in their outlook for the state and national economy, a fresh survey shows.
The Connecticut Business & Industry Association’s second-quarter 2010 economic survey shows little growth in key performance areas, and business confidence for an improving economy is waning.
The bright spot in the survey is that most respondents expect their companies to do well, and that could lead to hiring.
Only 20 percent of respondents expect the national economy to improve, down from 42 percent in the first quarter of the year and 36 percent in the fourth quarter of 2009. Forty-three percent expect the national economy to worsen, the highest number in more than a year, when the economy was plagued by recession.
As for the Connecticut economy, only 11 percent expect improvement, down from a high of 23 percent last quarter but up slightly from 8 percent a year ago. Only half expect Connecticut’s economy to worsen, up from 43 percent last quarter but down from a high of 66 percent a year ago.
“The economy has been slowly growing for the past few months, but this survey shows that business executives are not optimistic about the small, incremental improvements we’ve been experiencing,” says Peter M. Gioia, CBIA vice president and economist. “While the numbers have grown from the lows recorded at the beginning of 2009, we need to see favorable credit conditions, a surge in overtime, and fewer unemployment claims before Connecticut has sustainable long-term businesses and job growth.”
Read full story here.
CT unemployment rises as government sheds jobs
Friday, August 20th, 2010Unemployment in Connecticut rose slightly to 8.9 percent in July after the federal government’s temporary employment of U.S. Census workers came to an end, according to a release from the Connecticut Department of Labor.
The unemployment number rose from 8.8 percent in June and increased from 8.5 percent in July 2009. National unemployment is 9.5 percent.
July unemployment in the Hartford labor market is 9.5 percent, up from 9.1 in June and 8.7 in July 2009.
Despite the rise in unemployment, private sector jobs increased to a total of 12,500 new jobs since December 2009. Total July 2010 unemployment is 1,620,100.
The bulk of job creation came mostly from the retail sector (1,400) followed by manufacturing (1,000) and construction (600). In job losses, following the government sector (2,900) are professional and business services (800) and education and health services (300).
“Indeed, the private sector accounts for all of the job gains realized during 2010,” said state Labor Statistics Supervisor Salvatore DiPillo in a statement. “Additionally, July was the first time since June 2008 that Connecticut saw a year-to-year growth in jobs, having added 1,500 jobs since July 2009.”
Read full story here.
Editorial: Massachusetts sales tax holiday created a buzz
Wednesday, August 18th, 2010Was it a flash in the pan, or did the Massachusetts sales tax holiday light a fuse that will touch off a revival of consumer sales in the Bay State?
While the experts lean toward the flash-in-the-pan interpretation, we think the holiday showed one thing for certain: There is a lot of pent-up consumer demand out there, and people are looking for a reason to buy.
Last weekend, Massachusetts shoppers had that reason. The decision to exempt consumer purchases of $2,500 or less from the state’s 6.25 percent sales tax produced a flood of buying at retail outlets throughout the state.
Joseph M. Wagner, owner of Wagner Rug. Co. in Westfield, said he did nearly as much businesses in this one weekend than he normally does during January and February.
Liquor stores reported a boost in buying, while shoppers in the market for new household appliances, computers and electronics saved themselves a pretty penny.
Officials at the state Department of Revenue estimate that Massachusetts lost as much as $25 million in tax revenue due to the holiday, the state’s first since 2008. Although the state needs the revenue, we’re glad shoppers and retailers got the break.
Economists say the recession and the nation’s nearly 10 percent unemployment rate is holding consumer spending down. At the same time, the nation’s personal savings rate – while nothing to brag about – is much higher than it was in the years prior to the recession.
The big question is what will consumers do with the money they are accumulating. Will they continue to save, or will they do what the spending experts say is needed to get the economy moving?
A two-day tax break won’t kick-start the economy, but we think it is a sign of consumer sentiment. That sentiment says buy. High unemployment says hold on to your cash, and the economy hangs in the balance.
As the Primaries Pass, Goals Remain the Same
Thursday, August 12th, 2010This week Connecticut residents went to the polls to choose their favored candidates to run in the general election for the Republican and Democrat parties. To those who won – we offer our sincerest congratulations. To those who lost, we applaud your efforts and thank you for contributing to the democratic process. Diversifying the pool of candidates makes our democracy stronger and your inclusion in the debate can help to raise important issues that are sometimes not given their due attention.
As our focus moves towards the general elections in November, we continue to emphasize the fact that with new leadership, should come more cooperation among our elected leaders and the business community. We need leaders who can set a tone that will resonate throughout the state that the status quo is no longer acceptable and Connecticut needs to do more to improve our business environment. The remaining candidates must identify those challenges which are facing the business community in Connecticut, and provide realistic solutions, such as lowering state spending, attracting and nurturing more small businesses, and providing new incentives to encourage job creation in Connecticut.
We trust that these candidates will embrace some of the suggestions given to them by the business community, and also provide innovative ways to spur job and business growth. The result, will be leading our state in a new direction that creates a more prosperous and attractive climate for current and new businesses to keep their doors open and provide more jobs for Connecticut’s residents.
