Tag: vistage confidence index

Q2 Confidence Index

The Vistage Confidence Index was 103.1 in the second quarter, down from 106.9 in the 1st quarter but still well above last year’s 88.0.

Q2 2017 Vistage CEO Confidence Index highlights include:

• 55% of CEOs reported that economy had recently improved, slightly below last quarter’s 59% but more than twice last year’s 21%.
• Only 38% expected continued improvement, down from 57% last quarter and 58% in Q4 2016, but higher than 20% in Q2 2016.
• 60% of CEOs plan to expand their workforce in the year ahead. The majority 62% indicate that they were having trouble finding and hiring workers.
• 48% of CEOs are planning for increased investments in plant and equipment.
• 73% of expect increased revenue, down from 77% in Q1 and 78% in Q4 2016.

Chicago Area Survey Highlights:

• 28% of CEOs expect the economy to improve in the year ahead (vs. 38% nationally)
• 44% of CEOs expect to increase investments in the year ahead (vs. 48% nationally)
• 63% of CEOs expect to increase revenue in the year ahead (vs. 73% nationally)
• 57% of CEOs plan to expand their workforce in the next year (vs. 61% nationally)
• 51% of CEOs thought the national economy had improved in the past year (vs. 55% nationally)
• 57% of CEOs expect rising profits in the year ahead (vs. 60% nationally)

Why Vistage Works

Elisa K. Spain

Q2 Confidence Index

CEOs of small and mid-sized companies remain confident in the economy and their business prospects, according to the latest reading of the Vistage CEO Confidence Index. The index measured 106.9 in the first quarter of 2017, a slight increase from the 105.2 measured last quarter (Q4 2016) but well above the 91.4 reading from the previous quarter (Q3 2016).

Other highlights from the quarterly survey include the following:

CEOs predict continued economic growth

According to the majority of CEOs surveyed, the economy has started to rebound and shows signs of continued growth in the year ahead.

Q2 2017 Vistage CEO Confidence Index highlights include:

• Fifty-nine percent of CEOs reported that the economy had recently improved, compared to 42% last quarter and 27% one year ago. The outlook for the economy was the same as last quarter, with 57% of CEOs stating that they expect the economy to continue to grow in the next 12 months.
• Forty-seven percent of firms said they expected to increase their investment spending in the next year. “There is no clearer indication of an improved economic outlook than the fact that CEOs have become more willing to invest in new productive capacity in anticipation of greater future sales increases,” said Dr. Richard Curtin of the University of Michigan.
• Sixty percent of CEOs said they planned to expand their total number of employees in the next 12 months. About 32% said they would increase their hiring steadily over the year. The survey respondents also expressed the most positive net-employment intentions in the past 10 years.
• Similar to last quarter, 77% of CEOs say that they expect revenue gains this year. Coupled with last quarter’s 78%, this represents the most positive revenue expectation in the past 10 years.

Why Vistage Works

Elisa K. Spain

Q1 2017 Confidence Index

 

A rebound in CEOs’ perceptions of economic growth combined with a more favorable outlook for the economy has created a new optimism. The Vistage CEO Confidence Index was 106.9 in the 1st quarter 2017 survey, slightly above the 105.2 in last quarter’s survey, and well above the 3rd quarter reading of 91.4. Although the surge in optimism has thus far only restored confidence to the highs recorded following the Great Recession, the return of optimism to the highs of the past few years has meant that CEOs anticipate favorable trends in their revenues and profits.

Q1 2017 Vistage CEO Confidence Index highlights include:

• Economic growth rebounds. 57% of CEOs expect the economy to post additional gains during the year ahead, more than twice the 23% who expected improvement a year ago.
• Robust hiring plans. 60% of all CEOs plan to expand their workforce in the year ahead.
• Record revenues and profits. 77% of CEOs expect increased revenue, and 64% expect increased profits in the year ahead.
• Strong investment spending. 47% of CEOs expect to increase investment expenditures in the next year, barely below the decade peak of 49% set in the closing quarter of 2014.

Why Vistage Works

Elisa K. Spain

CEOs expressed record increases in optimism about economic prospects following the election. The Vistage CEO Confidence Index jumped to 105.2 in the Q4 survey, up from 91.4 in the 3rd quarter, and the second-largest increase since 2003.

The expected upsurge in business prospects have given a new urgency to finding, hiring, training, and retaining employees. This was the most significant and challenging issue voiced by CEOs in the latest survey. More than one-third of all firms expressed staffing and talent management as both their most significant current issue as well as their biggest challenge for 2017. Increases in investments and hiring represent a degree of confidence in the new president’s economic policies.

 

Q4 2016 Vistage CEO Confidence Index highlights include:

• 58% of CEOs expected the economy to improve during the year ahead, more than twice the 22% recorded in the 3rd quarter.
• 47% of CEOs plan to increase investments in the year ahead, reaching the highest level since the start of 2015.
• 60% of CEOs plan to expand their workforce in the year ahead, the most positive net employment intentions in ten years.
• 78% of CEOs expect revenue gains in the year ahead, up from 64% last quarter, and the most positive revenue expectation in the past ten years.

Why Vistage Works

Elisa K. Spain

Small business owners reveal that hiring and retaining talent is the most significant business challenge, according to a quarterly survey by Vistage Worldwide.

Vistage, a global organization, which assembles and facilitates private advisory boards for CEOs, conducts a quarterly survey covering a variety of small business topics. More than one-third of the 1,300 respondents cite staffing as the most significant issue they are currently facing, including identifying qualified candidates, hiring, retaining valuable staff members, and training. Additionally, CEOs note that their companies’ biggest barrier to innovation is talent, pointing to a common theme, and the importance of having a talent management & acquisition strategy in place.

Below are some key highlights from the Q2 2016 Vistage CEO Confidence Index (all members surveyed):

• 83 percent note that their team is made up of multiple generations – college interns through employees nearing retirement. And half of respondents are planning to hire recent college grads.
• Due to the influx of millennial workers, nearly two-thirds of companies have adapted their management style in the past five years, and 57 percent of respondents now offer different benefit packages or perks to attract young talent.
• Although 82 percent of CEOs conduct performance reviews of their employees, 60 percent of CEOs do not have a system in place for a self-review within their company.
• The biggest barrier to innovation for 30 percent of small business CEOs is finding employees with the right talent and skills.
• 83% of CEOs encourage all their employees to use their vacation days, although about half expect employees to check and respond to email while on vacation.

 

For more details Vistage Confidence Index.

Why Vistage Works

Elisa K. Spain

CEOs expressed greater concerns about the outlook for the domestic economy but remained upbeat about their own firm’s prospects in the Q1 2016 Vistage CEO Confidence Index survey. The Vistage CEO Confidence Index was 92.3 in the 1st quarter 2016 survey, down from 95.5 in the 4th quarter, and significantly below last year’s 105.8. Despite continuing economic and political uncertainty, more CEOs reported that finding, hiring, and retaining staff is the most significant business challenge they now face. With a tighter labor market, higher wages and benefits to secure key personnel may be needed. Given the still weak global economy as well as the sharply different economic policies favored by the presidential candidates, smaller firms have remained the engine of economic growth.

Below are some key highlights from the Q1 2016 Vistage CEO Confidence Index (all members surveyed):

54% of CEOs plan to expand their workforce in the year ahead.

32% of CEOs said the single most important issue they faced was finding, training, and retaining employees.

41% of CEOs plan to increase spending in new plant and equipment, the lowest level in three years.

70% of CEOs expect increased revenues in the year ahead, and 55% of CEOs expect increased profits.

41% of CEOs said they do not feel that they are prepared for a cyber-attack.

For more details Vistage Confidence Index.

 

Why Vistage Works

Elisa K. Spain

 

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

 

The quarterly Vistage Confidence Index is now available.

Confidence among CEOs has remained higher for a longer period than at any other time in the past ten years, according to a survey of 1,541 small- to mid-sized business owners. The survey, which took place from March 9 to March 18, 2015, provides a clear snapshot of current economic, market and industry trends.

The Vistage Confidence Index was 105.8 in the 1st quarter of 2015, between the 107.5 in the 4th quarter and 101.3 in the 1st quarter of 2014. The recent survey represented the eighth consecutive year-to-year increase, a new record for the persistence of optimism. The small 1st quarter loss involved all components, although none registered a significant decline. The stability in CEOs’ confidence stands in sharp contrast to the slowdown in the pace of economic growth at year-end, which has persisted into the 1st quarter of 2015.

Below are some key highlights from the Q1 2015 Vistage CEO Confidence Index (all members surveyed):

• 61% of CEOs said the economy has improved in the past year – the third highest level
  since the start of 2005.
• 45% of CEOs expect the economy to improve in the next year, well above last year’s 37%.
• 36% of CEOs said that locating, hiring, training, and retaining staff was the most significant
  business issue they are currently facing.
• 48% of CEOs plan to increase investments in new plant and equipment, and CEOs expressed
  the most expansive investment plans during the past four quarters that any other time since 2006.
• 77% of CEOs expect their revenues to increase in the year ahead, unchanged from last
  quarter and above last year’s 74%.

Elisa K. Spain