Chicago, IL, June 24, 2008 --(PR.com
)-- Entrex Private Company Index (PCI) data for May 2008 indicates that, on average, its diverse portfolio of North American private companies saw monthly revenues stabilize from the peak hit in April. While the May PCI reflects a 1.3% growth over April, it’s a significant slowdown when compared to the 5% increase the Index saw in April-over-March. May’s maintenance-level growth does appear to be contrary to other economic results that point toward broader economic recession.
PCI reporting company CEO, John Ratliff, of Delaware based Appletree Answering Service, commented that “the recession, so far, is largely a media created event. The GDP and our businesses continue to grow despite the negativity, and that growth is being fueled by entrepreneurs.”
His views are surely reflected by the 53% of PCI companies that saw May revenues equal to or greater than April. Among this group, industry sectors and geographic locations vary widely and PCI analysts were able to draw no obvious conclusions about any specific types of companies that are succeeding right now.
Stephen H. Watkins, CEO of Entrex—the PCI’s parent company, chimes in with his view: “The economists at the UCLA Anderson Forecast have been saying since 2007 that they predict no formal recession. Why do we constantly see media fanning the fire of recessionary anxiety rather than more balanced reporting of economic indicators and analyses that point to our economic strength?”
“Anderson Forecast economists came out with yet another quarterly update this week reiterating their sentiment but conceding that growth into 2009 will be weaker than we’ve seen in the past. But, the past few years were a boon for the growth and acquisition of entrepreneurial companies—in a variety of sectors. It is only reasonable to expect that a slowdown would come after a period of hyper activity, and perhaps this is it. “
The Entrex Private Company Index (PCI) reflects a general growth trend from Q3 2005 to date. Watkins says that their analysts will be the first to alert the media and the financial community if there is an extended decline affecting the sector of private companies with $250 million or less in revenue. Right now, the news is good for private company owners who seem to be able to continuously devise their business operations to produce consistent revenues.