Business confidence in the San Diego region dropped to its lowest level of the year in August amid major world events and concerns about the direction of tax reform in Washington.
The San Diego Regional Chamber of Commerce‘s monthly Business Outlook Index dipped to 13.2, its lowest point of 2017. Although still comfortably in positive territory, it was the lowest since October 2016 when the index dropped to 9.3.
The chamber found no consensus among local businesses on the outcome of tax reform, but 18 percent of firms surveyed think it is extremely important to adopt comprehensive federal tax reform, and 28 percent believe it is very important.
“The disparity we see from business on the preferred outcome of tax reform is understandable as industries likely favor different outcomes,” said Jerry Sanders, president and CEO of the chamber. “During our trip to Washington, DC, later this month we will be meeting with federal leaders and top policy makers and advocating strongly for the reforms most important to our regional business community.”
San Diego Private Bank, the sponsor of the monthly forecast, said the decline was not unexpected.
“With national and world events roiling August, this month’s sharp decline is not completely unexpected,” said Tom Wornham, president and CEO of the bank. “We have seen good recovery from these large declines in the past and it’s possible calmer news will bring more confidence to San Diego’s business community.”
