Business confidence is the key ingredient required for Bermuda to return to good economic health.

That is the view of Don Mills, chairman of Corporate Research Associates, Inc, who will tomorrow present the results of a survey on how confident Bermuda businesses are.

The first Bermuda Business Confidence Report is a collaborative effort involving Bermuda’s Total Research Associates Ltd (TRA), partnering with Corporate Research Associates Inc and HSBC Bank Bermuda Ltd.

“The strong recovery of the US economy should benefit Bermuda’s economy and provide opportunities to regain the Island’s position as a desired location for international business,” Mr Mills said.

“The establishment of the new Bermuda Tourism Authority (BTA) should help develop and implement an improved, industry-driven strategy to reposition Bermuda globally as a tourism destination. That said, the key to the recovery is improved business confidence that will lead to more business investment and job creation.”

The survey organisers claim this is Bermuda’s “first study capturing the local business community’s opinions on important factors such as current economic business conditions, anticipated business conditions for the coming year, capital purchase intentions and hiring intentions”.

The aim is to provide local business leaders with important economic indicators for industry sectors, the business community and the Island’s economy. A presentation of the survey results will be held tomorrow morning at HSBC Bermuda’s Harbourview building.

Graham Redford, managing director of Total Research Associates, explained the importance of establishing this benchmark research. “Bermuda may be concluding year six of a lost economic decade,” Mr Redford said. “Since the 2008 global financial crisis, most countries have now resumed economic growth, although weak growth in most cases.

“In Bermuda, the economy has essentially been in recession since 2008, with the economy actually continuing to shrink until 2012. There was some minimal growth in GDP in 2013, but well below inflation.

“Undoubtedly, this has been the weakest economic period in memory in the country and it has shaken confidence. The information from this study will become more valuable in the future as trending data becomes available to be able to determine changes in business confidence over time.”

Mike Walker, head of Commercial Banking, HSBC Bermuda, said: “Many companies have worked very hard in challenging economic conditions. This first of its kind research for Bermuda provides valuable insights into the health of the local economy. We support research within the local business community because we believe it’s important for Bermuda to have a clear indication of business trends.”

Mr Mills said there were signs of economic recovery.

“The number of new international businesses registered in Bermuda has been increasing, and there is growing recognition that changes are needed to improve Bermuda as a place to do business internationally and rebuild its tarnished image in that regard,” he said.

An “exclusive panel of Bermuda’s senior executives, with representation of both international and domestic companies from all major sectors of the economy” participated in the survey. The future bi-annual surveys of the BCI panel will occur in June and December of each year.