Connecticut business leaders are pessimistic about the future of the state and national and state economies despite strong growth over the last year, according to a new survey from the Connecticut Business and Industry Association.

The 2019 Survey of Connecticut Businesses, produced by CBIA and the public accounting and business advisory firm Marcum LLP, found an upswing in business growth driven by strong national and international markets. The survey shows business leaders believe location and quality of life remain the state’s best assets while the cost of doing business and legislative decision-making are its major weaknesses. The survey was mailed and emailed in mid-June through late July to approximately 5,300 top executives throughout Connecticut; 356 participated in the survey, with a margin of error of plus or minus 5 percent.

CBIA president and CEO Joe Brennan said the survey highlights concerns over the structural issues impacting Connecticut’s economic recovery and the whiplash consequences of federal trade policy.

“While Connecticut businesses are finding ways to survive and grow, their concerns for the future are clearly apparent in this survey,” he said today. “State policymakers must acknowledge these very real concerns and focus on policies that will restore confidence, promote investment, and drive long overdue economic and job growth.”

Brennan noted that small businesses were particularly frustrated with the 2019 legislative session, with the survey showing many felt unfairly targeted by the new mandates and tax changes.

The reports key findings include:

• Forty-three percent of respondants reported sales growth in 2018, up from 36 percent the previous year and the highest in five years.
• Growth numbers were weaker for firms with 100 employees or less: 35 percent reported growth, 47 percent said sales were unchanged, and 19 percent experienced a decline.
• A record number of the state’s businesses reported a net profit, at 70 percent. A further 10 percent said they broke even, down from 18 percent in 2017, and 17 percent reported losses, up from 13 percent.
• A little more than half expect the size of their workforce to remain static, with only 23 percent looking to add workers, compared with 39 percent last year.
• Investments in property or facilities are top priority for only 15 percent of companies, with employee training being the top priority for 29 percent followed by technology at 16 percent of respondants.
• Almost half are concerned with the negative consequences of tariffs and trade disputes, and 81 percent believe the state’s business climate is declining, a 20-point jump from last year.

This year’s survey was in the field following passage of two major workplace mandates – paid family and medical leave and the $15 hourly minimum wage – and a two-year budget that relied almost exclusively on tax and fee increases to close a multi-billion dollar deficit.