Orange County business executives’ outlook for the current quarter fell to 59.2 from 85.3 in the previous three-month period, according to a survey conducted by economists at California State University, Fullerton.
“This large quarterly decline is linked to expectations of a slowing economy in light of higher inflation, higher interest rates, and Russia-Ukraine war,” said the economists led by Anil Puri, director of the Woods Center for Economic Analysis and Forecasting at CSUF.
A reading of above 50 in the expectations index, known as the OCBX, indicates a belief in future growth in the economy.
The quarterly Orange County Business Expectations Survey of more than 900 OC business executives was conducted from June 20th to 28th.
In other findings:
- 30% of firms surveyed intend to increase their labor force.
- More than three-quarters of OC business executives say inflation is their biggest concern.
- 30% of the firms surveyed expect to have higher profits in the next three months, down from 40% last quarter.
