Benchmark Business Index Continues Decline in 4th Quarter

The Michiana Benchmark Business Index, based on a survey by the certified public accounting firm of Kruggel Lawton CPAs, decreased in the 4th quarter of 2015 by just over 5% from the previous quarter. The overall Benchmark Business Index for the 4th quarter was 55.59, out of a maximum possible score of 100, down from 58.61 for the 3rd quarter of 2015.

Kruggel Lawton CPAs conducts this survey of chief financial officers (CFOs) in for-profit companies in the Michiana region on a quarterly basis. The survey tracks changes in companies’ revenue, profitability, and employment levels compared to the same quarter during the prior year, along with CFOs’ perception of the business outlook for their companies. Survey respondents’ input on these four metrics is combined into the Benchmark Business Index, which serves as a gauge of the Michiana-area business climate.

CFOs from 38 Michiana-area companies participated in the 4th quarter survey. Compared to the prior quarter’s survey, three of the four survey metrics – Profitability, Revenue, and CFO Optimism – declined 5-7%, and the decline in Employment was just under 2%. This most recent quarter’s decline in CFO Optimism was the largest quarterly decline since the survey began five years ago, and the overall Benchmark Index is now 8% below its level at the inception of the survey.

“Based on the 4th quarter Benchmark Business Index survey, the Michiana-area economy did not appear to finish 2015 on a high note,” said Terry Bush, a director at Kruggel Lawton. “The fact that the overall Index has now fallen to the lowest point since reaching its highest score two years ago is noteworthy. The third straight quarterly decline in CFO Optimism may indicate that CFOs’ expectations for 2016 are not overly strong.”

If you are a CFO in a Michiana area for-profit business and would like to participate in this survey and receive results, please contact Terry Bush at tbush@klcpas.com or call 574-289-4011.