 | A slight change in the proportion of firms indicating that business
conditions in the local economy are likely to remain unchanged from 52
percent to 53 percent between the September 2005 and December 2005
surveys. Respondents also indicated that the most pressing problems they
face are: health care expenses for employees, high energy cost,
competition from other businesses, and uncertainty of future economic
performance.
|
| With regard to their own levels of activity, the most recent survey
found that 40 percent of reporting firms expect to expand their activity
compared to 43 percent in September 2005. Among the reporting firms,54
percent expect to maintain their current levels of activity. For those
firms that expect to expand their level of activity, 53 percent
anticipate improved business conditions in the local economy.
|
| Among the firms that feel business conditions will get better over
the next six months, 58 percent plan to expand their own level of
activity over the next two quarters. The percent of firms planning to
hire more employees in the future rose from 38 percent to 40 percent
between the September 2005 and December 2005 surveys. The most recent
survey indicated 53 percent of the reporting firms expect to maintain
their current staff levels over the next six months.
|
| Plans related to capital expenditures for the next six months
changed in an upward direction in the most recent survey compared to the
September 2005 survey. The percent of firms planning to increase capital
expenditures was 33 percent in the December 2005 survey compared to 26
percent in the September 2005 survey. Among the firms planning to
increase capital expenditures, 64 percent expect that conditions for
obtaining financing will be easier or about the same in the next six
months. Between the two surveys there was a slight decrease in the
percent of firms planning to reduce capital expenditures from 12 percent
to 11percent.
|
| The percent of firms planning to raise average selling prices was 45
percent in the December 2005 survey, the same as in the September 2005
survey. Meanwhile, there was an increase in the percentage of firms
reporting that their employees received more compensation in the
preceding six months from 51 percent to 60 percent between the September
2005 and December 2005 surveys.
|
| The proportion of reporting firms anticipating easier access to
financing rose from 5 percent in September 2005 to 8 percent in December
2005. At the same time there was a noticeable decline in the proportion
of firms unsure about prospects for obtaining funding from 10 percent to
4 percent between the September 2005 and December 2005 surveys. |
