Slowdown affecting capital purchases, hiring

The economic slowdown is real, a majority of Small Business Times readers say. And more than half of those who say there is a slowdown have had to rethink capital purchases or other investments.
Those results are from the survey, conducted by Business Development Directives for SBT between June 28 and July 5. SBT provided Business Development Directives a random sampling of its circulation list for the survey.
The study examined the perceptions of area business leaders in terms of the current economic situation and its impact on small businesses in southeastern Wisconsin.
Here’s what the survey found:
– The majority (83%) of the participants agreed that the economy is in a slowdown. Of those who believe the economy is in a slowdown, more than half (54%) have had to rethink capital purchases and/or other investments. Thirty-six percent of the participants also had to rethink their hiring efforts. More than one-third (39%) weren’t affected at all, however they did agree that the stock market is in a slowdown.
– In spite of the overwhelming agreement regarding the slowdown in the economy, only 23% of participants expressed a need to downsize employment.
– Over half (57%) of participants are experiencing a reduction in sales and/or revenues.
– Nearly a quarter (23%) of participants expressed that their inventory levels have gone down over the past six months. Only 7% of participants showed that their inventory levels had increased, while 22% said their inventory levels had remained the same. Forty-six percent of participants represented organizations with no inventory.
– Participants were asked to make a prediction regarding their inventory levels over the next six months. Only 5% expect their inventory levels to go up, while 29% expect them to stay the same, and 13% expect them to go down.
– Over half (51%) of participants expressed that orders for their products or services were continuing but on a smaller scale.
– Participants were asked to make a prediction regarding the direction of their company’s revenues over the next six months. Forty-three percent expect an increase, while only 17% of participants expect their revenues to continue to decrease. Thirty-four percent expect their revenues to stay the same over the next six months.
– More than two thirds (67%) of participants said that the recent downturns in the stock market did not have an affect on their business decisions. Also, over half (58%) of participants said that the interest rate cuts had no affect on their business decisions.
– When asked how long they thought the economy would remain in a slowdown, roughly half (52%) said they thought it wouldn’t last any longer than six months. Only 12% expressed that they thought the slowdown would continue for more than another year.
– The participants were asked what their biggest outside influence was. Many listed the economy, or something related to the economy. Other responses included:
– The weather
– The auto industry
– Competition
– Customer attitudes
Most participants believe that their current biggest influence would continue to be the most influential outside force in the near future.