Main Street Monday – 85% of Businesses Expect Increasing or Similar Capital Needs in 2023
January 9, 2023
Delaney Sexton
Contributing Editor
Main Street Monday – 85% of Businesses Expect Increasing or Similar Capital Needs in 2023
“Attitudes about the national economy also have changed. Roughly one-fourth (22%) are optimistic about the U.S. economy this year, down sharply from 50% in 2022. Notably, 65% of business leaders in the United States said they expect a recession in 2023,” reads J.P. Morgan’s 2023 Business Leaders Outlook.
Here are the 2023 statistics:
• 8% of business leaders in the United States have a positive outlook about the global economy today when a year ago that number was at 34%.
• 22% are optimistic about the national economy, and 39% are optimistic about the local economy. On the other hand, 43% and 24% are pessimistic about the national and local economy respectively.
• 91% of leaders are saying their costs are rising.
• Over 80% of businesses have passed rising prices onto consumers and buyers.
• Companies are split about capital expenditures in 2023. A third are planning to increase capital expenditures while a quarter is planning on decreasing spending.
• A third of business leaders think that their capital needs will increase in 2023, and 15% believe that their capital needs with decrease.
• Of the business leaders who responded, 16% say that cost of debt or access to capital is a top external business threat.
• Two-thirds of leaders are optimistic about their company’s performance.
• 63% are expecting their revenue and sales to increase in 2023.
• Just over half of leaders believe their profits will rise, a drop from the two-thirds that believed their profits would rise in 2022.
• Almost half of business leaders conduct business outside the United States.
• 27% plan to have a partial or complete business transfer. Most of those with plans to transfer want to transfer within the next two years (65%) while 35% plan to transfer two or more years from now.
• More than a third of leaders (38%) will seek mergers and/or acquisitions as a growth strategy during 2023.