Gauge of South Bend/Elkhart Regional Economy Declines Further in 3rd Quarter
The third quarter 2018 Michiana Benchmark Business Index (BBI), compiled by the certified public accounting and consulting firm of Kruggel Lawton CPAs, decreased for the second straight quarter. The overall BBI was 55.59 out of a maximum possible score of 100, down over six percent from the second quarter of 2018.
Kruggel Lawton conducts this confidential survey of CFOs in for-profit companies in the South Bend/Elkhart region on a quarterly basis. The survey tracks changes in companies’ revenue, profitability, and employment levels compared to the same quarter of the prior year, along with CFOs’ perception of the business outlook for their companies. Participating CFOs’ input on these four metrics is combined into the overall Benchmark Business Index to provide a barometer of the Michiana-area business climate.
Noteworthy third quarter survey results include:
- Of the four metrics that comprise the Index, the Profitability metric decreased the most by far – down 17%
- The Revenue and Employment/Headcount metrics dropped 5% and 4% from the 2nd quarter respectively
- CFO Outlook remained relatively flat, declining by less than 1%
“The marked decline in profitability could be attributable to higher wages and overtime, increased raw material or supply costs, or other factors,” said Terry Bush, a director at Kruggel Lawton CPAs. “On a more positive – or at least neutral – note, the CFO Outlook metric stayed relatively flat. As a result, based on this quarter’s survey results, it does not appear that CFOs have any greater concerns about the economic outlook for their companies.”
If you are a CFO in a Michiana area for-profit organization and would like to participate in this survey, please contact Terry Bush at firstname.lastname@example.org or call 574-289-4011, ext. 205.
With offices in South Bend and Elkhart, Indiana, and St. Joseph, Michigan, Kruggel Lawton CPAs is a full-service accounting and business consulting firm offering assurance services, tax consulting, estate planning, business valuation, and business accounting services. Kruggel Lawton also has national and international capabilities as an independent member of the BDO Alliance USA. Learn more at www.klcpas.com.