Posted on: Saturday, December 13, 2003

Kaua'i economy looking stronger

By Jan TenBruggencate
Advertiser Kaua'i Bureau

LIHU'E, Kaua'i — Many Kaua'i businesses are seeing strong improvement this year and expect even better results during the first half of next year, a level of optimism that seems to lead the state.

Such were the results of a business survey conducted for the county by the University of Hawai'i Economic Research Organization.

"The Kaua'i firms responding to this survey appear to be more upbeat about economic prospects than other firms statewide," said

Byron Gangnes, the UH associate professor of economics who conducted the survey.

Mamo Cummings, Kaua'i Chamber of Commerce president, said her discussions with businesses also suggest a broad-based economic resurgence.

"The feedback I'm getting from the business community is that they are looking up, they are pumping, and things are looking great for '04," Cummings said. The economic improvement is across the board, with notable strength in real estate, tourism and construction, she said.

Gangnes and his associates surveyed representatives of 39 companies during late October and early November.

They found 74 percent of respondents felt that general business activity has improved over the past six months. Also, 68 percent said they expect further improvement during the next six months.

About half of the respondents expected improved sales and profits in the next six months, while only 5 percent expected worse results.

If there is weakness in the reports, it is that most employers do not expect to add to their workforces. Just 21 percent of employers expected to hire for new positions, Gangnes said.

Reach Jan TenBruggencate at jant@honoluluadvertiser.com or (808) 245-3074.