Bears And Belt Tightening


What'll you do if the stock market tanks? Here's a clue: Each year, consulting firm Cicco & Associates Inc. surveys about 400 small-biz owners on spending plans for the coming year. About three-fourths of the way through the 1997 survey, on Oct. 27, the Dow plunged 550 points. In the 113 responses postmarked Oct. 27-Nov. 15, planned spending increases fell 50%, even though the market recovered 340 points the next day. Even computer purchases took a hit. Travel faced the deepest cuts. Only bank activity such as debt payment remained unchanged. Optimism returned in responses mailed after the Nov. 15 cutoff date as the market held steady.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.