Published in the Lancaster Online, by Tim Stuhldreher

September 30, 2014

For the first time ever, a majority of respondents in the Pennsylvania Chamber of Business and Industry’s annual economic survey have given the commonwealth’s business climate a thumbs-up.

Specifically, nearly half of respondents — 46 percent — called the state’s “overall business climate” good and 11 percent called it excellent, for a total of 57 percent.

The numbers have never before exceeded half in the 24 years the survey has been conducted, its authors said.

Respondents also said they’re optimistic about the economy, though they remain cautious on hiring and investments.

Sales were up over the past 12 months for 39 percent of those surveyed, and 45 percent expect stronger sales in the coming year, the most in nearly a decade.

Nearly one-quarter — 23 percent — plan to hire in the next 12 months. Though that's only a "small uptick" from recent years, it's still a five-year high, the survey said.

A similar number of firms, 22 percent, said they expanded their work force over the past 12 months. That's "still far below pre-recession levels,” the survey said.

At pre-recession peaks, more than 40 percent of firms were reporting expansions, it said.

Similarly, though 31 percent plan to invest in equipment or facilities, the majority of planned investments are minor, indicating “heightened reluctance to commit to any new spending,” the survey said.

Business leaders said the economy is their No. 1 concern, followed by regulation, increased costs, taxes and health care costs.

Six in 10 said controlling health care costs should be state lawmakers’ top priority, far outpacing pension reform (20 percent) or liquor law reform (3 percent).

Asked to name two taxes that “most hinder job creation and economic growth,” nearly half picked property taxes and more than one-third picked personal income taxes.

The chamber teamed with the Elizabethtown College Department of Business and the High Center for Family Business at Elizabethtown on the survey, which was conducted by Susquehanna Polling and Research.

It is based on 652 interviews and has a margin of error of plus or minus 3.8 percent.

(Tim Stuhldreher, "Pa. business climate good, say majority of executives in survey," Lancaster Online, 9/30/14)