The survey shows the number of small and medium sized business owners in Ohio that expect sales and to decrease or stay the same in the next six months is up three percent, and the number that expect profits to decrease or stay the same is up 14 percent. Not surprisingly, the number that expect to add new employees is down – by about 13 percent. Robert Dye, senior economist with PNC, says many of those business owners see a divided economy with one segment recovering nicely, and the other struggling.
DYE: We have major global corporations who are, have been able to put together some pretty decent profits of late or are participating in the recovery, but many mom and pop shops who are much more tied into local economic conditions, local consumer spending conditions are really feeling like this recovery is not yet engaged for them.
Nearly 40 percent see low consumer demand as their most pressing challenge, Dye says, but 17 percent see uncertainty over government policy – such as the effects of the new health care bill or future taxes – as THEIR major obstacle to expansion.
Dye says pessimism about the economy is evident nationwide, but it’s more prevalent in Ohio…
DYE: …not so much because the psychology is different but most likely because the mix of industries is a little bit different and Ohio has its share of durable goods manufacturing which has been hit quite hard by this recession and that may be contributing to these findings.
Only six percent of Ohio small to mid-size business owners expect to hire in the next six months, compared to 22 percent nationally.