Did you hear the news?
CEO confidence is up, according to the Vistage CEO Confidence Index 2nd quarter results. While CEOs of small to medium sized businesses have lowered their expectations for the pace of growth in the overall economy, they remain confident that, over the next twelve months, they will increase revenues and profits, as well as hire new employees. In the fourth quarter of 2008, CEO confidence indexed at 48.7 – an all-time low since the survey began in 2003. According to University of Michigan's Dr. Richard Curtin, who has directed the survey since its inception, CEO confidence rose to 94.4 this quarter, marking the sixth consecutive quarterly increase.
According to Vistage International Chairman and CEO Rafael Pastor, the Q2 results are particularly significant, “CEOs of small to medium size companies have adjusted to the lean economy, are doing more with less, and have positioned their companies for success. Their continued confidence sends a strong message that small and medium sized businesses will be among those who will lead our overall economic recovery.”
The Vintage news comes on the heels of more positive news, this time from the Conference Board. The Conference Board Measure of CEO Confidence(TM), which had decreased in the first quarter of 2010, was unchanged in the second quarter. The Measure remains at 62 (a reading of more than 50 points reflects more positive than negative responses).
“CEOs' confidence held steady in the second quarter and expectations signal no change in the pace of economic growth in the coming months,” says Lynn Franco, Director of The Conference Board Consumer Research Center. “The outlook for corporate profits remains optimistic, with almost half saying market/demand growth will be the principal driving force.”
Good news? What do you think?