2009 Business Confidence Index
The Anchorage Economic Development Corporation (AEDC) recently completed its Business Confidence Survey conducted by the McDowell Group at the end of 2008. The purpose of the survey is to assess factors that affect Anchorage businesses and the overall economy, and derive a statistical measure of business confidence.
The Anchorage Business Confidence Index for 2009 is 51.8
The Anchorage Business Confidence Index for 2009 is 51.8, indicating that the business community anticipates nominal growth when compared to last year. (An index between 51 and 100 indicates a positive outlook, while an index below 50 shows a negative outlook.)
Respondents forecast small increases in several aspects of their own business or organizational activity.
Opinions about gross sales reveal a confidence index of 56.4. The confidence index for net profits and employment is 54.6 and 53.8 respectively. Survey participants expect a very minor decrease in capital expenditures in 2009 (confidence index is 49.3).
Energy prices are perceived as the most significant barrier to future business growth. Nearly half of all respondents also report that high energy prices led to increased prices for services and products they offered.
And while nearly 60 percent of respondents expect the Anchorage economy to fare worse in 2009 compared to 2008; most of these responses were categorized as “slightly” worse (47 percent). Expectations are brighter for Anchorage than they are for the state as a whole (64 percent expect economic declines).
Respondents believe that the most important project to the Anchorage economy is the Alaska gas pipeline, followed by a natural gas pipeline from the North Slope to Cook Inlet and workforce development.
Click here to read the complete study.
