When the pandemic will end is anyone’s guess, but most Rhode Island business owners believe the worst is behind them, according to results from PBN’s latest biannual business survey.
The growing confidence is at least partly based on improving business results reported in the summer survey.
Quarterly business growth rebounded this past summer to its highest levels since 2017. Net income also bounced back from the historic lows of the last two quarters, leaving about 57% of respondents expecting an improved economy over the next year. That compares with 42% who felt the same a year ago.
One-quarter of respondents said they’ll be purchasing big-ticket items in the next quarter, up from just 15% a year ago.
And for the first time since 2019, an improving economy again has a majority of businesses expecting to hire in the next quarter.
But is this just wishful thinking coming out of a difficult 2020?
It’s not that business owners don’t have any concerns.
Costs for materials and supplies are up from the previous quarter. And hiring remains a challenge for many.
But Edward M. Mazze, a University of Rhode Island distinguished professor of business administration, says the survey results show that Rhode Island businesses have adjusted to pandemic-related uncertainties.
“It’s about survival of the fittest,” Mr. Mazze said.
It’s a business truism temporarily obscured by Paycheck Protection Program loans that most Rhode Island businesses thankfully haven’t forgotten.