Optimism about the U.S. economy among Orange County small businesses jumped to 63% from 38% a year earlier, according to the 18th annual Small Business Economic Survey by MUFG Union Bank.
“This is the largest year-to-year jump that we’ve had,” said Managing Director Todd Hollander, who is head of Business Banking. “It’s a lot better than last year.”
The bank surveyed 693 owners of small businesses, each with revenue over $15 million, in California, Oregon and Washington.
The results indicated that 53% of the respondents across the three states believe the U.S. economy is heading in the right direction, compared with 38% last year.
The survey included 73 owners in Orange County, who rang in with the 63% mark on the same question.
The higher level of optimism in OC industries might track to those that have a strong presence here and that are doing well, such as medical devices, technology, manufacturing and real estate, he said.
The presidential election of Donald Trump might have boosted confidence due to his promise to ease government regulations and the subsequent increase in the stock markets, he said.
Most OC small business owners, 73%, said they would keep capital expenditures the same, similar to last year’s responses. About 84% of small businesses in Orange County plan to keep staffing levels stable.
A total of 15% of OC respondents said they will increase capital expenditures this year, almost double from 8% last year and lower than the 21% in 2015.
About 85% of OC owners said their businesses were heading in the right direction, and about 55% felt the same about the OC economy.
About 51% of Orange County’s small business owners said their healthcare costs have “somewhat or greatly” risen as a result of the healthcare changes, consistent with results from last January.
The bank conducts the survey not just for marketing purposes, but also to get a better sense of what small-business owners are planning, Hollander said.
