Utah businesses are bullish

Utah business executives are bullish about their financial future, though high fuel and health insurance costs, along with a shallow labor pool, remain concerns, according to a new study released Thursday by Zions Bank.

The report, the first in a quarterly series of reports commissioned by Zions and conducted by research firm Dan Jones & Associates, polled 387 Utah "business executives and key decision makers" to gauge the health of Utah's economy and discover trends in the marketplace.

Participants completed an online survey July 12-21. Zions spokesman Rob Brough said respondents comprise an demographically representative array of the Utah market, including business concerns large and small.

"I think the survey very clearly says that for the coming quarter, Utah businesses continue to see a strong economy, strong profits and opportunities for continued expansion for their business lines," said George B. Hofmann, Zions' executive vice president of business banking.

Among the results of the survey:

• Overall, respondents said they were optimistic about the financial future. On a scale of 1 to 10 ("very pessimistic" to "very optimistic"), participants' mean score was 7.87. More than 80 percent ranked their level of optimism at a 7 or higher, with one-third of all executives rating their optimism level at a 9 or 10.

• Half of the survey respondents predicted that their companies' economic health will improve in the next quarter, the survey found, while one in nine anticipated a downturn in their company's health over the next quarter. Thirty-nine percent said they expected things to remain about the same.

• Capital spending also likely will remain at current levels for a majority (51 percent) of panelists, according to the survey. Panelists in urban areas of the state predicted more spending than business leaders in less urban areas.

"I think one of the things that came out of this survey is the sense of optimism of smaller companies to grow and invest in both new plants and facilities as well as employees, and the more stable companies — which have had basically excess capacity due to technology — to absorb that capacity without increasing plant or employee expansion," Hofmann said. "What this report shows is a stable business environment in Utah, and one that is cautiously optimistic for the next few years."