More businesses are optimistic about improving profits and hiring during the third quarter, according to the latest Metropolitan Milwaukee Association of Commerce business outlook survey.
The survey found 55% of the 75 responding Milwaukee area companies expect to see a year-over-year increase in profits for the third quarter. That figure was up from 36% in the second quarter survey.
Similarly, 44% of companies expect an increase in total employment during the third quarter compared to a year ago. In the second quarter, just 28% of firms expected to hire more.
On both metrics, the increased optimism is more pronounced among smaller firms, defined as those with less than 100 employees
Profit optimism was driven by manufacturers while hiring expectations were driven by non-manufacturers.
When it comes to topline growth, there was little change in expectations with 53% of surveyed firms expecting improved third quarter sales year-over-year. In the second quarter, 52% of firms predicted growth for the quarter.
Continuing economic growth and recovery remained the top issue of concern for surveyed businesses, followed by price inflation. Talent attraction and labor shortages moved into the third spot followed by health care costs.
Tariffs, which ranked as the third highest area of concern in the second quarter MMAC survey, dropped to the fifth slot in third quarter survey.
