VBR Releases Third Quarter Survey Results

VBR Releases Third Quarter, 2004 CEO Economic Outlook Survey Results
So. Burlington, VT- Results from the Vermont Business Roundtable's (VBR)
third quarter, 2004 CEO Economic Outlook Survey, show that, compared to
the previous quarter results, more of our member CEOs are planning
increases over the next six months in two important measures: capital
spending and employment. While projections for company sales are
optimistic, compared to the previous quarter results, a higher percentage
of business leaders feel that sales are more likely to remain stable for
the next six months.
Douglas J. Wacek, President & CEO of the Union Mutual of Vermont Companies
in Montpelier and Ernie Pomerleau, President & CEO of Pomerleau Real
Estate in Burlington are members of the VBR. When asked to comment on his
CEO Economic Outlook Survey responses, Wacek stated that "continued growth
and technological changes in internal business practices would stimulate
the need for additional staff at his company over the next several
months." Pomerleau said that he expects an increase in company sales and
capital expenditures over the next six months. He said he has "seen a
much higher level of activity in development and brokerage opportunities
from inquires both inside and outside the state this year." Pomerleau
Real Estate is planning several remodels and expansions of existing
projects this year and they are actively reviewing several new ones
projected for 2005.
The survey, modeled after the national Business Roundtable's CEO Economic
Outlook survey, was conducted in early July and enjoyed a response rate of
60% up from 40% last quarter. The key findings, which reflect the
membership's outlook for the next six months, include the following
highlights:
* 71% of responding CEOs expect an increase in consumer sales, 25% see no
change, and 4% anticipate a decrease. [Second quarter results: Increase
80%, No Change 15%, Decrease 4%]
* 51% expect capital spending to increase in the next six months, 42% see
no change, and 7% anticipate a decrease. [Second quarter results: Increase
43%, No Change 41%, Decrease 15%]
* 59% expect employment to increase in the next six months, 37% see no
change, and 4% anticipate a decrease. [Second quarter results: Increase
50%, No Change 48%, Decrease 2%]
* On average, CEOs expect GDP growth to be in the 4.1% range in 2004.
[Second quarter results: 4.6%]
"The diminished sales projections over the next six months reflect a
continuing concern by CEOs over the ongoing slump in consumer spending.
Higher fuel prices are partly attributable to that measure. On the other
hand, there is an upturn in the projected capital outlays and new hires
expected in the next six months, both of which are positive news for the
Vermont economy," said VBR President Lisa Ventriss.
Created in 1987 as a nonprofit, public interest organization, the Vermont
Business Roundtable is comprised of 120 CEOs of Vermont's most active and
committed businesses and employers dedicated to making Vermont the best
place in America to do business, be educated, and live life. Member
businesses employ over 47,000 employees in virtually every county across
Vermont.