A new survey of Wisconsin businesses found that economic optimism is being replaced by fears of an upcoming recession, according to a statement from Wisconsin Manufacturers & Commerce (WMC). Responses to the Wisconsin Employer Survey show that 71% of businesses believe that the state’s economy will enter a recession within the next 12 months. Four in 10 of those surveyed expect a recession before the end of the year. The survey was conducted by WMC over the last three weeks of June and covered a variety of topics. Forty-four percent of respondents rated the Wisconsin economy as strong, a 14% drop over a year ago. Forty-seven percent rated the state’s economy as moderate and 9% said it was weak.
Only 26% of employers believe the U.S. economy is strong, 50% rate it as moderate, and 27% say it is weak. A year ago, 84% of survey respondents said the state economy would grow. This year, that number dropped to 45%. According to the survey, Wisconsin businesses are even more concerned about the national economy. In regard to attitudes toward inflation, two-thirds of Wisconsin businesses have seen their costs go up by more than 10% in the last six months, 20% higher than six months ago. The Wisconsin Employer Survey is conducted twice a year by WMC. This summer, WMC surveyed 216 employers that make up a representative sample of its membership.
