Hawaii businesses
optimistic this year

More than half of businesses that took part in a recent study said they expect Hawaii's economy to improve this year.

The 2005 Bank of Hawaii Business Confidence Survey also found that most local companies are optimistic their sales and profits will increase during the next 12 months.

Paul Brewbaker, Bank of Hawaii's chief economist, said the study shows that business owners' confidence in the local economy remains at peak levels.

"By several measures, firms' optimism appears to be holding steady in contrast to the late 1980s, when business confidence levels rose to similar heights but quickly subsided," Brewbaker said.

The semi-annual survey, which gathered responses from 351 local business, found that 6.3 percent believed that the economy will get weaker this year. Just 8.4 percent believe that their sales will drop off.

More than 75 percent of the respondents said they approached or exceeded their expectations for sales and profits in 2004.

Brewbaker noted that Hawaii's economy has ranked among the top performing states nationwide during the past 12 months.

He added that local job growth has exceeded the national average in recent years as the unemployment rate has remained at around 3 percent, the nation's lowest.