Bay Area Businesses Bullish On 2011 Prospects

SAN JOSE (KCBS) – There’s some more positive news on the local economy: money managers for Bay Area businesses are optimistic on growth in 2011.

”We’re hearing some good news from local chief financial officers,” said Matt Armanino with Armanino McKenna, which conducts an annual survey of CFOs.

KCBS’ Matt Bigler Reports:

In the latest questioning of 200 CFOs, 60 percent expect their companies will grow over 10 percent this year. In the technology sector 65 percent are expecting at least 20 percent growth.

Armanino said that many of these companies have been hoarding cash over the past year.

”This year they plan to deploy that into increased sales and marketing activity, and, surprisingly enough, into hiring,” said Armanino. “So as much as we’ve heard about a jobless recovery, Bay Area firms are definitely looking at hiring again.”

There is also optimism in the IPO market. The survey found that over 20 percent of tech companies anticipate going public sometime within the next three years.

(© 2011 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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