CEO confidence at three-year low amid expectations of revenue growth

Vistage CEO optimism levels have dipped to a three-year low, according to the Vistage CEO Confidence Index for Q1 2016. But while the survey of small- to mid-sized businesses found that CEOs are concerned about the economy’s overall outlook, it also reports that they remain upbeat about their own companies’ prospects. Many CEOs reported that they are hesitant to commit to investment in expansion. Just 41 percent plan to increase spending in new plant and equipment, which is the lowest number in three years.

But the first-quarter survey found that concerns surrounding workforce expansion remain front-of-mind. More than half of surveyed CEOs plan on increasing their staff, with more than 30 percent stating that their number-one concern is hiring, training and retaining good employees. 

Despite the overarching concerns for the domestic economy, 70 percent of CEOs expect increased revenues in the year ahead, with more than half of the polled CEOs looking forward to increased profits. The Vistage CEO Confidence Index for Q1 2016 was 92.3, which is well below last year’s 105.8. The survey reports that given a weak global economy and the uncertain domestic political terrain, smaller companies remain the engine of economic growth.

Analysis provided by Dr. Richard Curtin, University of Michigan. 

2743 views