Wednesday, October 5, 2011
The troubled economy is holding down profit forecasts at many U.S. Companies, and the outlook is even worse in San Diego.
SAN DIEGO The volatile economic climate is changing hiring plans for many U.S. Companies.
The Regus Business Confidence index finds the sluggish economy is sapping business confidence. The index was down to 90 in September. In April it was 119.
The flagging optimism is not killing plans to hire new workers, but firms plan to use cheaper workers. Businesses are targeting recent college grads, contract workers, and remote employees. One reason is that profit forecasts are weak.
"On the profit side, across the U.S. Businesses that we surveyed, 34 percent were showing profit growth," said Regus Vice President Sande Golgart. "Where as in San Diego only ten percent of the companies were showing and forecasting profit growth."
The Regus Business Confidence index polled managers and business owners in 85 countries. They track forward looking statements, profits and hiring plans.
"Thirty-four percent are still showing bottom line growth," said Golgart. "But you're starting to see those numbers, I guess, their confidence in what those numbers are starting to show, start to wane a little bit."
Uncertainty about the economy is pushing companies to be more cautious, said Golgart.