California Business Minute™

Hi, I am Tim Johnson and welcome to the California Business Minute.

The Bay Area Business Confidence Index, a quarterly measurement of the
outlook of employers in the region sponsored by the Bay Area Council tumbled
to its lowest level in its 7 1/2-year history, based on results of its recent survey
conducted in late January and early February.

The index reading of 38 fell below the previous low posted in the autumn of 2001,
in the midst of the dot-com crash. The poll of top executives from 455 regional
employers showed widespread pessimism about business conditions over the
next six months and rising expectations that job cuts might be necessary to cope
with a slowdown.

Sixty five percent surveyed expected Bay Area conditions to worsen over the next
six months, compared with only 5 percent who anticipated an improvement. The
remainder thought conditions would stay the same. In addition, 22 percent expect
to trim their workforce, the same percentage as those who thought they would add
workers. A year ago, 44 percent surveyed planned to increase employment and only
6 percent thought they would shrink payrolls.

Council officials cautioned against exaggerating the extent of pessimism from the survey.
They point out that those surveyed that expect conditions to worsen also anticipate a
moderate rather than a substantial deterioration. And many businesses were positive
about the outlook for their own industries.

I am Tim Johnson and this has been the California Business Minute.

WHY DO I READ THE CALIFORNIA BUSINESS MINUTE?