News & Events

Economic Barometer Newsletter


January/February 2004

The Economic Barometer is a quarterly update from the Greater Washington Initiative (GWI) for site selection consultants, venture capital executives, real estate professionals international partners and corporate decision makers. Your feedback is welcome.

In this special issue of the Economic Barometer, the Greater Washington Initiative (GWI) highlights the Washington, DC region’s economic health from the perspective of area business leaders. According to a recent Business Pulse survey, the views of Greater Washington’s business executives have shifted from careful optimism to strong enthusiasm about 2004. Nearly all local executives (95%) who responded to the winter survey were optimistic about the region’s economy as they delve into the year’s first quarter.

According to Thomas G. Morr, Managing Partner, GWI, “The recent Business Pulse results confirm that this region continues to offer strong business opportunities. It is heartening to know that Greater Washington’s economy – already the nation’s strongest regional economy - is continuing to improve and that firms are planning to hire staff this year to handle additional work."

Key Findings: More Business Leaders Say that Sales and Profits Will Increase

By more than a 12-to-1 margin (63% vs. 5%), Washington, DC area business leaders say they expect sales revenues to increase in the coming quarter. This represents an increase over last quarter’s survey, when 58% said they expected sales revenues to increase.

More importantly, area executives are optimistic that their companies will increase their profitability, not just their sales. By more than a 9-to-1 margin (56% vs. 6%), business leaders expect profits to increase – not decrease. Last quarter, 52% said they expected profits to increase. As noteworthy is that only 6% of local executives say their profits will decrease, a 50% drop from last quarter (12%).

This outlook helps explain why more than one-third of Greater Washington companies (37%) are planning to add staff in the coming quarter and only 6% say they will reduce staff.

Business leaders also say that they expect their company’s capital expenditures to increase. More than one-third (34%) say that capital expenditures will increase, compared to 7% expecting a decrease. Last quarter, 29% said that capital expenditures would increase and 12% said they would decrease.

Business leaders in Q1, 2004 say that they expect their company’s advertising expenditures to increase. More than one-third (34%) say that advertising expenditures will increase, not decrease (6%). Last quarter, 25% said that advertising expenditures would increase and 12% said they would decrease.

By more than a 3-to-1 margin (38% vs. 12%), business leaders say their company performed better – not worse – than they expected. Half (50%) say their company performed as expected.

This positive business outlook also affected area business leaders’ personal expenditures for gifts during the recent holiday season. Area business leaders say they spent more in 2003 compared to 2002 (31% vs. 28%). Forty-one percent say they spent about the same in 2003 compared to 2002.

Methodology: The Business Pulse survey of Washington area business executives was conducted online by Widmeyer Research & Polling in conjunction with the Washington Business Journal and the Greater Washington Board of Trade. Subscribers to the Washington Business Journal were sent an email invitation and directed to a website. A total of 336 business leaders, over half of them CEOs, CFOs or COOs, completed the study. Respondents represented all major sectors of the DC-area economy, including banking and finance, business services, energy, healthcare, high-tech, manufacturing, real estate, retail and restaurants, sports business and travel. The margin of error for the study is +/- 5.4% at the 95th confidence interval level.

Editor’s Note: Updates on real estate development, locate announcements, labor force and venture capital investments will return in the April 2004 edition of the Economic Barometer.

What GWI can do for you
GWI is the region’s economic development marketing organization providing research and assistance to site selection consultants, real estate professionals, corporate and association executives. An affiliate of the Greater Washington Board of Trade, GWI's confidential and complimentary services help companies and associations to:

Identify strategic partners and venture capital contacts;

Meet public and private sector leaders;

Arrange site tours; and

Obtain demographic and real estate information about the region.

The Greater Washington Initiative is funded by area public jurisdictions that encompass the District of Columbia, Northern Virginia and Suburban Maryland, and numerous leading area companies. Contact Tim Priest at 202-857-5984 to find out how GWI can help you.

The Economic Barometer is a quarterly communication for business professionals on regional economic trends and news. For more information on the Economic Barometer or to be added to the distribution list, email greaterwashingtoninitiative@bot.org. To opt-out of this list, please reply to this message with UNSUBSCRIBE in the subject line. For regional statistics and news, visit our website at www.greaterwashington.org. GWI is an affiliate of the Greater Washington Board of Trade.

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Contact GWI

Greater Washington Initiative
(202) 857-5999