Business Optimism in Holding Pattern until after California Bond Election, Says Santa Clara University Economist.

Business Editors

SANTA CLARA, Calif.--(BUSINESS WIRE)--Feb. 24, 2004

Silicon Valley Executives Tell SCU Business Index That

Region's Economic Growth May Be at Slow Pace

Uncertainties surrounding the upcoming California bond election may be dampening business decisions in many sectors, says Santa Clara University economist Kris Mitchener.

Business executives and managers polled this month by the latest Silicon Valley Business Index kept their fiscal expectations in check, according to the index released today by the Leavey School of Business at Santa Clara University.

Although Silicon Valley leaders are generally optimistic about business conditions, "The SCU index numbers reflect a general optimism about future business conditions," Mitchener said, although noting that the latest business index shows little change from last month's figures.

"No further improvement in optimism suggests that business leaders may be waiting for a resolution to the California budget crisis and a stronger signal that the overall economy has completely rebounded from the 2001 recession," Mitchener said. "Corporate profits have improved considerably in Silicon Valley, but employment has yet to turn the corner."

In addition to responding to questions about economic conditions now and in the future, survey respondents were asked about the impact of a potential Democratic presidency on the Silicon Valley economy. About 43 percent of those surveyed thought candidate John Kerry would have a positive effect on Silicon Valley's economy if successful in his presidential bid, with John Edwards picking up 18 percent of the support.

Approximately one-third indicated their preference for a Republican administration. (Howard Dean dropped out of the race on Feb. 19, during the week the survey was taken.)

Since February 2002, the SCU Business Index has asked managers and executives in a wide range of businesses in Silicon Valley to assess their business prospects for the next six months, and compared to the past six months, as well as current and future availability of jobs in their companies. It is managed for the Leavey School of Business by The Survey Company.

Complete SCU Business Index results and methodology for February and past years can be found at http://www.surveycompany.com/SCUBI/SVOutlook.html.

MEDIA : Professor Kris Mitchener will be available for interviews Tuesday afternoon, February 24. Contact Prof. Mitchener directly at 408-656-0530, or call SCU media relations, at 408-554-5126.

About the Santa Clara University Business Index

This monthly business indicator, the only one of its kind for the Silicon Valley region, is a composite index that every month tracks business conditions in Silicon Valley companies and their markets, as well as trends in job availability in the region, by polling the region's executives and managers.

About The Leavey School of Business

The Leavey School of Business at Santa Clara University began in 1926, and was one of the first business schools in the country to receive national accreditation. Its undergraduate business program has been recognized as one of the best in California, and its MBA program has been ranked in the nation's top 20 part-time programs. More than 80 percent of its 1,100 MBA students are working professionals in Silicon Valley.

About Santa Clara University

Santa Clara University, a comprehensive Jesuit, Catholic university located in California's Silicon Valley, offers its 8,054 students rigorous undergraduate curricula in arts and sciences, business, and engineering, plus master's and law degrees. Distinguished nationally by the third-highest graduation rate among all U.S. master's universities, California's oldest higher-education institution demonstrates faith-inspired values of ethics and social justice. More information is online at www.scu.edu.