Utah businesses report confidence in economy, survey says

SALT LAKE CITY — Utah business leaders are expecting the economic climate to improve soon, but they have lingering concerns about the costs of employee health insurance and fuel, according to a report released Thursday.

In a Zions First National Bank study conducted by Dan Jones & Associates, 46 percent of business leaders surveyed said they expect better financial results in the second quarter of 2010 than they saw in the first quarter. That figure was up 9 percentage points from the first quarter.

The survey found an average economic outlook among business people of 6.46 on a scale of 1 to 10, with 10 being the most optimistic. That figure is up from a low of 5.86 at the end of 2008, but it still hasn't reached levels found during 2006 and 2007.

Business executives volunteer to be in the survey and are then selected by random sample. Of the 247 business professionals in the 2010 survey, 24 percent expect an increase in capital spending soon, and about three-fourths think supporting local business is important. Only about 10 percent expect demand for their products and services to decrease.

For the seventh consecutive quarter, the survey found the business leaders' highest concern is the increasing cost of employee health insurance.

Businesses were split on whether they would be able to hire new employees, but only about 14 percent expected layoffs.

The 43-page report and quarterly reports from years past can be found at utaheconomicforecast.com. Business leaders can also register there to participate in the program.

e-mail: rpalmer@desnews.com