The San Diego Regional Chamber of Commerce’s latest business outlook index, released Sept. 13, dropped to its lowest point of 2017 due to uncertainty and falling expectations of revenue, employment and business conditions.
The index, which took the temperature of local businesses in August, was at 13.2, a big decline from last month's 20.7. But the index is still in positive territory. With zero being neutral, it runs from -100 to +100.
“With national and world events roiling August, this month’s sharp decline is not completely unexpected,” Tom Wornham, president and CEO of San Diego Private Bank, which sponsors the index, said in a news release. “We have seen good recovery from these large declines in the past and it’s possible calmer news will bring more confidence to San Diego’s business community.”
Confidence dropped across several industries. Notably, the transportation/automotive industry fell from 26 to -2 over concerns of rising costs, declining revenue projections and part of the industry cited competition from Uber-type ridesharing services.
The survey also asked businesses about federal tax reform, with most businesses stating it’s at least somewhat important, 28 percent saying it’s very important and 18 percent responding that it’s extremely important. In addition, 14 percent believe it’s unimportant and 16 percent are unsure what to make of the issue.
The index is based on a survey of randomly selected members of San Diego, East County, Alpine, Escondido, Lakeside, Vista, Santee, Encinitas and National City Chambers of Commerce.