Maryland?s small and midsized businesses are forecasting increased profits and sales for the next six months, according to a survey conducted by PNC Financial Services Group.
The results show that 68 percent of Maryland businesses expect increases during the next six months, compared with 65 percent nationwide. Maryland businesses project a 60 percent gain in profits, while nationally, other business owners only expect a 54 percent gain. The results are viewed as key indicators of how the state?s small-business economy is faring.
“The owners of small and midsized businesses provide unique insights into the issues that impact economic growth at the state and national level,” said Stuart Hoffman, chief economist for PNC Financial Services Group Inc., who is considered the nation?s No. 2 economic forecaster by USA Today.
The survey was conducted between January and March for PNC by Harris Interactive. More than 1,200 businesses were surveyed, including 152 in Maryland with annual revenues of $100,000 to $250 million. The report offers insight into economic trends and the business community?s plans for hiring, selling prices and capital spending.
“With the majority of Maryland business owners expecting increased sales and profits during the six months, it appears stable interest rates and energy prices below last fall?s highs have contributed to their confidence,” said J. Marshall Reid, regional president, Greater Baltimore region PNC.
“Their outlook could be characterized as guarded optimism, however, since the higher energyprices seen in recent weeks are their greatest concern thus far,” Reid said.
Despite their optimistic outlook, most Maryland businesses said they don?t plan to add more staff; only one-third plan to increase hiring of full-time workers, compared with 32 percent nationwide. When it comes to investing in their own businesses, 72 percent of Maryland firms said they have plans for capital spending during the next six months. Technology equipment, cited by 23 percent, is most likely to receive the spending increase.
