Category: Vistage

The quarterly Vistage Confidence Index is now available.

A Look Back and 4 Musts for Business Leaders in 2016:

CEOs expressed somewhat greater concerns about the outlook
for the domestic economy but remained upbeat about their own
firm’s prospects in the Q4 2015 Vistage CEO Confidence Index
Survey. Overall, the data does not indicate that confidence is on
a downward slide but is simply moving sideways at high levels.
The well-worn pattern of uneven economic growth has produced
periods of growing optimism followed by the realization that the
economy will not deviate from the more modest growth rates
established since the Great Recession.

The Vistage CEO Confidence Index was 95.5 in the Q4 2015 survey,
just below last quarter’s 96.3 and well below last year’s 107.5.
Importantly, firms were slightly more optimistic about revenue and
profit growth over the past few quarters, and more than half of all
firms planned to expand their payrolls. These data indicate that
firms still anticipate continued growth in their businesses. Indeed,
the most significant challenge now faced by firms is finding, hiring,
training, and retaining staff, reported by 35% of all firms, mentioned
more than twice as frequently as any other issue facing their firms.
With a tighter labor market, these concerns will inevitably mean
higher wages and benefits to secure key personnel.

Below are some key highlights from the Q4 2015 Vistage CEO Confidence Index (all members surveyed):

36% of CEOs said the economy has improved compared to a year ago, down from 63% in last year’s 4th quarter and the worst assessment
of current economic conditions in three years.

25% of CEOs expected gains in the pace of economic growth during the year ahead, the worst outlook in four years.

55% of CEOs planned to expand their workforce in the year ahead.

71% of CEOs expected increased revenue gains in the year ahead. 58% of CEOs expect increased profits.

What Our Vistage Members Want You to Know

Why Vistage Works

Elisa K. Spain

The quarterly Vistage Confidence Index is now available.

Vistage CEOs expressed somewhat greater concerns about the outlook for the domestic economy largely due to uncertainties about international conditions, volatile and declining stock prices and the much debated Fed liftoff in interest rates. Despite these concerns, CEOs continued to be more optimistic about prospects for their own firms. The Vistage CEO Confidence Index was 96.3 in the 3rd quarter 2015 survey, down from 99.0 in the 2nd quarter and last year’s 103.4. The cumulative gains that could have been anticipated during long expansions have not occurred.

While the recent slide in confidence is of concern, the data thus far indicate that most firms now expect a continued slow pace of economic growth. Revenue and profit growth were judged slightly better than last quarter, and firms still plan to expand their payrolls as well as increase their planned fixed business investments to be better able to profit from sales growth in the future.

Below are some key highlights from the Q3 2015 Vistage CEO Confidence Index (all members surveyed):

• 40% of CEOs reported the economy had improved compared to a year ago, down from 46% last quarter and 61% in the 1st quarter of 2015.
• 27% of CEOs expect the economy to improve in the next 12 months, down from 35% in the prior quarter and 45% at the start of 2015.
• 71% of CEOs expect revenue gains in the year ahead, and 56% of CEOs expect increased profits in the year ahead.
• 34% of CEOs said recruiting and retaining staff are the most significant challenges currently facing their business, more than twice that of the next most cited issues—too slow growth (15%) and economic uncertainty (15%).

What Our Vistage Members Want You to Know

Why Vistage Works

Elisa K. Spain