Survey: Obamacare putting damper on Valley economy

Source: The Business Journal
Written by Gabriel Dillard

While the San Joaquin Valley's economy continues to growth, the rate of growth in September fell compared to August. That's the word from the San Joaquin Valley Business Conditions Index, produced by Fresno State's Craig School of Business. The overall September index is 50.2, compared to 55.4 in August. An index of more than 50 indicates an expanding economy over the course of the next three to six months. Uncertainty emanating from Washington DC is a factor, said Ernie Goss, Craig School research faculty member. "Uncertainty surrounding the Affordable Care Act and the budget stalemates in Congress are causing firms to be much more cautious about hiring and have encouraged layoffs and cuts in hours worked,” Goss said in a statement. The survey found that 51.9 percent of businesses have either been reluctant to hire, reduced hiring, planned layoffs or reduced hours worked as a result of the federal Affordable Care Act. The survey also found sluggish growth in employment and inventories, while wholesale prices continue to rise. The business confidence indicator fell to 48.7 percent in September, compared to 51.1 in August.

URL to original article: http://www.thebusinessjournal.com/news/economy/9011-survey-obamacare-putting-damper-on-valley-economy

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