Contributed by researchers with PNC Bank.
Optimism is high across all categories evaluated by PNC in the eighth year of a semi-annual survey of small- and mid-size business owners and executives in Indiana. Four in 10 respondents (41%) describe their outlook for the national economy as optimistic in spring 2018, up from fall 2017 (30%). Nearly half (47%) are optimistic about their own companies, just below the survey high (51%) from spring 2017.
Our spring 2018 survey shows that small- and mid-sized business owners in Indiana have steady optimism about the prospects for the national economy, their local economies and their own companies. Hiring expectations will remain flat.
Indiana’s unemployment fell to 3.2 percent in the first quarter of 2018, which is exceptionally low compared to the national average. This may pose an obstacle for employers looking to hire as the state is experiencing a tight labor market. Leisure and hospitality services declined in 2017, which indicates consumers are not spending. Manufacturing, transportation and utilities were weaker than recent years’ trends.
With support from tax cuts and an increase in federal spending, U.S. economic growth will accelerate in 2018 and the labor market will continue to tighten. To prevent the economy from overheating the Federal Open Market Committee will continue to gradually raise the federal funds rate throughout 2018.
More details and information can be found in the following report: Indiana PNC Economic Outlook Spring 2018
