Grant Thornton LLP Business Optimism Index stagnates; still at second-lowest level since 2002

CHICAGO, July 2, 2008 – Grant Thornton LLP’s Business Optimism Index, a quarterly confidence measure of U.S. business leaders, remained stagnant at 56.1 in May 2008 in relation to the 56.3 index in February 2008. The slight drop makes it the second-lowest index number since the index’s inception in 2002.

The survey found that U.S. business leaders’ sentiments toward the U.S. economy remain pessimistic, with only 19 percent expecting conditions will improve over the next six months.  The outlook for their own businesses, however, remains high with 75 percent feeling optimistic about their company’s growth over the next six months. The number who said that they have plans to increase staffing dropped only slightly from 36 percent to 35 percent, while a repeating 10 percent have plans for reductions.

 

	February 2008	May 2008
OVERALL Business Optimism Index	56.3	56.1
Believe U.S. economy will improve	19%	19%
Believe U.S. economy will worsen	24%	25%
Very or somewhat optimistic about own business	75%	75%
Very or somewhat pessimistic about own business	23%	23%
Plan to increase staff	36%	35%
Plan to decrease staff	10%	10%

 

To see all the findings from Grant Thornton's Business Optimism Index click here.

About the Grant Thornton Business Optimism Index
The Grant Thornton Business Optimism Index, a quarterly survey of U.S. Business Leaders, is comprised of three measures:

• U.S. economy: Business leaders’ perceptions of whether the U.S. economy will improve remain the same or deteriorate in the next six months.
• Business growth: Business leaders’ perceptions about the growth of their own businesses over the next six months.
• Hiring expectations: Whether business leaders expect the number of people their companies employ to increase, remain the same or decrease in the next six months.
  

The survey was conducted between May 19th and May 30th, 2008. More than 350 senior executives from various industries responded to the survey.

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About Grant Thornton LLP
Grant Thornton LLP is the U.S. member firm of Grant Thornton International Ltd, one of the six global accounting, tax and business advisory organizations. Through member firms in more than 80 countries, including 50 offices in the United States, the partners and employees of Grant Thornton member firms provide personalized attention and the highest quality service to public and private clients around the globe. Visit Grant Thornton LLP at www.GrantThornton.com.