OC business leaders’ expectations for the current quarter “collapsed” due to the coronavirus pandemic and 50% of local companies intend to let employees go, according to economists at California State University-Fullerton.
“There has been a significant change in attitudes similar to the Great Recession but at a lightning speed,” economists led by Anil Puri said in their expectations survey for the three months that started Wednesday. Puri directs CSUF’s Woods Center for Economic Analysis and Forecasting.
The economists’ business expectations index dropped from 92.9 in the first quarter to 22.7 currently. A reading of above 50 indicates belief in future economic growth.
The report said the crisis “is likely to be a longer process than anyone expected.” The first quarter survey showed 1 in 10 firms planned to shed workers; the current survey, charting expectations through June said, “few firms intend to increase hiring.”
This survey of OC business executives was conducted from March 19 to March 31; 55 executives responded for a response rate of approximately 9%.
Go here for more updates on how OC companies are responding to coronavirus.
For ongoing, in-depth coverage of coronavirus effects on OC businesses, see the Monday print edition of the Business Journal.