Michiana Benchmark Business Index Steady in 2nd Quarter

The Michiana Benchmark Business Index increased slightly in the 2nd quarter of 2015 by just over 1% from the previous quarter. The overall Benchmark Business Index for the 2nd quarter was 59.82 out of a maximum possible score of 100, up from 58.97 for the 1st quarter of 2015.

Kruggel Lawton 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. These four components are combined into the Benchmark Business Index, which serves as a gauge of the Michiana area business climate.

Compared to the prior quarter’s survey, two of the four survey components – Profitability (up nearly 10%) and Revenue (up by 4%) – contributed to the modest increase in the overall Benchmark Index. The Employment component of the survey was unchanged, and CFO Optimism declined 5% from the prior quarter.

“The 2nd quarter Benchmark Index results are not spectacular, although the healthy increase in profitability among local companies is a welcome sign,” said Terry Bush, a director at Kruggel Lawton. “After the disappointing results of the 1st quarter, this quarter’s survey results seem to indicate our Michiana region’s economy is stable, with the boost to profits particularly encouraging. The modest decline in CFO optimism bears watching, although this component of the survey remains strong, and in fact it’s been the highest survey component for nearly three years.”

If you are a CFO or controller 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.