In survey, CEOs say economy stabilizing, but few plan to hire

Top executives in New Jersey say their businesses and the state economy are becoming more stable, but a majority report plummeting sales volumes are affecting job creation, according to a quarterly survey of confidence among CEOs and chief financial officers.

Top executives in New Jersey say their businesses and the state economy are becoming more stable, but a majority report plummeting sales volumes are affecting job creation, according to a quarterly survey of confidence among CEOs and chief financial officers.

“Everyone knows someone who is unemployed,” said Ren Cicalese, managing shareholder of Alloy, Silverstein, Shapiro, Adams, Mulford, Cicalese, Wilson & Co., which conducted the survey, released Thursday. “But executives are worried about their sales declining, so they’re holding positions more conservatively. We had a brief glimpse at optimism earlier in the year, but the many negative reports have belittled it.”

The number of executives who indicated the local economy was improving slipped from 20 percent in the first quarter of 2012 to 9 percent in the second quarter, while those who felt their businesses were improving fell from 30 percent to 16 percent. Still, 62 percent of the 82 executives surveyed believe their companies are currently stable, though 51 percent indicated they have no plans to hire in the next six months.

“Many companies think they’re stable now, but they’re concerned about what will happen with the upcoming election,” Cicalese said. “There’s still that uncertainty of the changes in tax law and tax rates coming after the election that can affect business.”

Cicalese said the impending merger between Rowan University and Rutgers University’s Camden campus — which only 21 percent of respondents said they support — has “got a lot of people concerned,” and “Christie has taken a lot of heat because of it,” since 49 percent of executives indicated they are dissatisfied with state government.