Owners of small- and medium-sized businesses in D.C. and Maryland have a more positive outlook for the next six month regarding sales and profit increases than the nation as a whole, a new survey said.
PNC Financial Services Group released the results of its economic outlook survey, which examines national trends, at a meeting in Baltimore on Thursday. According to PNC, small and medium-sized businesses account for 70 percent of new jobs and generate half the nation’s economic output.
In Maryland, 68 percent of those surveyed expect to see sales increases in the next few months and 60 percent expect profit increases.
In D.C., 66 percent expect sales increases, and 57 percent expect profit increases. Nationally, 65 percent of businesses across the country expect sales increases and 54 percent expect profits to rise. Profit increases were lower than sales increases because of higher costs for materials and health care, according to Mike Reid, PNC’s regional president for Baltimore.
The No. 1 concern for all small business owners was energy prices, according to PNC Chief Economist Stuart Hoffman; interest rates were also a common concern.
“I think they were right on with their announcement; most of our clients are showing a rosy outlook,” D.C. Small Business Development Center Executive Director Henry Turner said of the survey. “Their main concern is where the economy is going.”
Hoffman also offered a general economic outlook for the nation, projecting slow growth, with but with a continuing recession in the housing market which could spill into consumer spending. Hoffman is less worried than former Federal Reserve Chairman Alan Greenspan, who recently suggested a one out of three chance of recession by year’s end; Hoffman projected about a one out of four chance.
