Businesses Expect Increased Activity for Third Quarter, Per Cal State Fullerton Survey

Area businesses are optimistic that their gross sales and revenue will increase during the third quarter, according to the latest results from the Business Sentiment Survey conducted by Cal State Fullerton's College of Business and Economics.

The CSUF survey was sent to 745 firms, with 109 executives, or 14.6 percent of the total responding.

Of those surveyed, 77 said they expect sales and revenue to increase somewhat for the next three months, announced Anil K. Puri, dean of the College of Business and Economics and co-director of the Institute for Economic and Environmental Studies who directed the survey.

"This is an encouraging sign," said Puri. "Given the uncertain economy, the response of the county businessmen indicates cautious optimism for the future."

Regarding staffing levels, inventory/equipment investment and labor costs/wages, Orange County business leaders are cautious, most predicting that these would remain stable.

Most of those surveyed reported that during the second quarter, their business experienced stable or some increases in gross sales/revenue and operating profits before tax. Respondents also said that, for the most part, staffing levels, inventory/equipment investment and labor costs/wages remained stable. Few noted significant increases or decreases in any of these areas.

Regarding expectations for overall activity for the third quarter, 73 said they expected it to remain stable. An additional 30 said they expect activity to increase. Expectations for the general economy were evenly split: 45 for some increases, 42 for remaining stable. Only 10 of those surveyed indicated the regional economy would decrease somewhat.

Puri and Lee Cockerill, research associate with the Institute for Economic and Environmental Studies, conducted the survey from April 16-26, contacting representatives in the business services, computer, financial services, healthcare, manufacturing, marketing and real estate fields.

A complete copy of the survey is available at http://business.fullerton.edu. The next survey will be conducted in July.

Media Contacts: Anil Puri at (714) 278-2592 or apuri@fullerton.edu
Lee Cockerill at (714) 278-2509 or lcockerill@fullerton.edu
Pam McLaren of Public Affairs at (714) 278-4852 or pmclaren@fullerton.edu