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Silicon Valley outlook hits 12-month low
Friday, Aug. 6, 2004
SANTA CLARA, Calif. – Aug. 6, 2004 - Silicon Valley business leaders aren’t predicting dramatically improving conditions over the rest of the year, according to a survey conducted in July by Santa Clara University business school faculty. But researchers say that’s not necessarily bad news.
“Although sentiment about the future hit a 12-month low, the survey suggests that business conditions are stabilizing, not deteriorating,” said Robert Hendershott, associate professor of finance at Leavey School of Business at SCU. “The index number itself still suggests a positive outlook,” he said.
“The flip [between the forward index trending down and the backward line trending upwards] was inevitable,” said Hendershott, who holds the Henninger Family Fellowship and serves as academic director for SCU’s Center for Innovation and Entrepreneurship. “The decline is consistent with the NASDAQ's pullback and the overall stock market’s recent flat performance,” he observed, “but this year’s corporate profit gains continue to be strong, and
Survey participants were also questioned whether the recent rise in interest rates would have a positive or negative impact on their business and that of their customers. “That’s another piece of good news,” he said. “Survey participants don’t believe that the shift to a rising interest rate environment will be a big factor for the
Some survey respondents even see rising rates as a benefit, with the most positive comments coming from 10 percent of the respondents in investment and banking industries.
Since February 2002, the SCU Business Index has asked managers and executives in a wide range of businesses in
Complete SCU Business Index results and methodology for July and earlier months can be found at www.surveycompany.com/SCUBI/SVOutlook.html
Media: Professor of Finance Robert Hendershott is available to comment on survey results and on business conditions in
This monthly business indicator, the only one of its kind for the
About The Leavey
The Leavey School of Business at