Small businesses in La. still pessimistic about economic recovery

Louisiana businesses have more faith in the local economy than in the national economy when it comes to expectations for improvement, according to a new survey conducted by Capital One Bank. In its quarterly “Market Pulse” survey, the bank says large businesses are reporting better financial performances than a year ago. While national economic trends are not expected to change, 23% of small businesses in the state anticipate them to worsen. Companies in the service industry take the most pessimistic view, while businesses in the wholesale and utilities industries are optimistic, according to the survey. Of the 300 Louisiana small businesses surveyed by the bank, 22% reported their business is worse compared to 17% who said the same nationwide. Yet consumers continue to report a steady upward trend in business conditions, with 34%—mainly between the ages of 45 and 54—saying they are “excellent” or “good,” while 62% say they are “only fair” or “poor.” Two in five Louisianans say jobs are easy to find, while 51% say they are hard or “nearly impossible to find.” At the same time, Louisiana residents with incomes between $50,000 and $75,000 say jobs are hard to find, indicating that supporting a middle-class lifestyle in Louisiana can be more difficult than is sometimes represented. The bank says small businesses are not ready to hire, and more large businesses—60%—have no plans of adding employees.