Economic Optimism Decreasing Among Wisconsin Businesses, Survey Says

WISCONSIN, WI — A majority of Wisconsin businesses that responded to the latest Wisconsin Employer Survey believe there will be a recession in the state's economy within 12 months, according to a news release by Wisconsin Manufacturers & Commerce.

WMC, a combined state chamber and manufacturer's association, said it conducted the survey on 216 employers on a variety of topics. The group released the results on the economic survey on Wednesday.

According to WMC, 40 percent of the businesses surveyed expect a recession by the end of 2022. When it comes to the next 12 months, 71 percent expect a recession, according to the WMC.

The survey pointed toward businesses having "waning economic optimism," but comes after Democratic President Joe Biden argued a recession is "not inevitable" in an interview with AP in June. At the time, Biden said he saw reason to be optimistic about a 3.6 percent unemployment rate.

But according to WMC President and CEO Kurt R. Bauer, businesses are continuing to be hit hard be increasing costs and supply chain challenges.

“These issues are driving Wisconsin employers to be deeply concerned about the prospect of a slowing economy," Bauer said in the WMC news release.

WMC said it conducts the Wisconsin Employer Survey twice every year. The group said the survey provides a snapshot of where Wisconsin employers stand on a variety of issues.

Some key points made by the WMC Summer 2022 Wisconsin Employer Survey included:

• 44 percent of survey respondents said the Wisconsin economy was strong, a 14 percent drop since a year ago.
• 47 percent of respondents rated the Wisconsin economy as "moderate" and 9 percent ranked it as "weak."
• When it comes to the national economy, 26 percent of employers believed the country's economy is "strong," while half said it was "moderate" and 27 percent said it was "weak."
• In 2021, 84 percent of respondents said the state economy would grow, while it now sits at 45 percent.

When asked about the recovery beyond a possible recession, 60 percent of businesses surveyed said inflation would not be under control until 2024—54 percent said it supply chain issues will take the same amount of time to solve, according to the WMC news release.

The entire Wisconsin Employer Survey on the Economy is available online.