TUSCALOOSA, Ala. (WBRC) – Inflation is hurting us all, because we’re paying more for everything. Businesses are said to be doing no better.
A new survey shows that business leaders in our region have a negative view of the economy.
We spoke to University of Alabama socio-economic analyst Susanne Robichau, who developed this survey.
This is a quarterly business survey conducted by UA and respondents are business leaders. Once a quarter, they answer six questions. Those questions range from their predictions for the state’s economy to projections of their own sales, employment and potential profits.
Inflation, higher gasoline prices and the recession aid Robichaux’s Alabama Business Confidence Index (ABCI). Anything below 50 points is considered a ‘negative’ attitude. The most recent ABCI shows an index of 48.4.
“We are in this quarter for the second consecutive quarter, the index was below 50, which indicates that most business leaders expect some economic downturn on the six variables we asked,” said Robichaux.
The survey was conducted in September 2022, but there is plenty of positive news to counter business leaders’ negative economic outlook. 48.4 points slightly higher than the previous quarter.
“So the businesses will feel very confident in the coming quarter – from October to December,” Robichaux added. “Own sales are up and hiring is up relative to the previous quarter, but we’re seeing concerns about Alabama and the outlook for America.”
But for Alabama averages, Robichaux says it’s not something to lose sleep over, and they’re likely to improve with inflation.
Robichau says it’s time to get rid of your debt.
“It’s always a good idea to get out of debt if you can, and with the increases we’ve seen in grocery prices and things like that, shake off what you can and can afford.”
Robichau said it’s too early to say what anyone thinks about the first quarter in 2023.
The next survey will be conducted in December 2022.
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