Kaua‘i’s economic conditions have improved markedly over the past six months, and even better times are on the way. This is the view expressed by 39 participants in the most recent Kauai Business Conditions Survey. More than 70 percent of
Kaua‘i’s economic conditions have improved markedly over the past six months, and even better times are on the way.
This is the view expressed by 39 participants in the most recent Kauai Business Conditions Survey.
More than 70 percent of surveyed business persons report an improvement in overall economic conditions as well as conditions within their own industry.
Fewer than 10 percent say conditions have worsened.
Firms were equally optimistic about prospects for the next six months, with 68 percent saying general business activity on Kaua‘i will rise, 32 percent seeing unchanged conditions, and no respondent expecting lower economic activity.
The Kauai Business Conditions Survey is conducted for the County of Kaua‘i by the University of Hawaii Economic Research Organization (UHERO).
Surveyed firms are asked to gauge whether various economic indicators are higher, lower or unchanged compared with six months ago.
They are also asked to evaluate these same indicators over the next six months.
The economic indicators include: the general level of business activity, business activity in the respondent’s industry, and profits, sales, the number of employees and prices in the individual’s business.
Companies are invited to participate via local business organizations, and the respondents may not represent a statistically random sample of all Kaua‘i businesses.
The Kaua‘i firms responding to this survey appear to be more upbeat about economic prospects than other firms statewide as reported by the Bank of Hawaii in late summer.
Bank of Hawaii reports that 35 percent of the firms surveyed expect improvement in the statewide economy while 41 percent expect improvement in their particular industry.
About the same proportion (44 percent) expect no change over the next year.
(UHERO does not currently conduct business outlook surveys beyond Kaua‘i.)
While the small sample suggests caution in comparing results, the more positive numbers for Kaua‘i may reflect the healthier tourism economy on the island, which is not reliant on the still-struggling Japanese market, and the island’s buoyant construction sector.
It appears that the optimism that firms expressed in our last survey back in April is now showing up in measure-able gains at the firm level.
More than half of surveyed firms report an increase in both sales and profits compared with six months ago, and nearly 40 percent now report they are getting higher product prices.
The labor market continues to stand out as an area of relative weakness, with only 21 percent of firms reporting higher employment or plans for hiring in coming months.
