Small and Midsize Business CEO Optimism Slightly Recedes in Q2, Vistage CEO Confidence Index Finds

Survey finds CEOs remain optimistic, but rank achieving efficiencies to reduce costs as the most important factor for future success

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Vistage Worldwide, Inc.

Jun 27, 2018, 06:00 ET

SAN DIEGO, June 27, 2018 /PRNewswire/ -- While the outlook of small and midsize business CEOs remains largely unchanged from the start of 2018, some are less optimistic when it comes to investment opportunities and hiring intentions, as well as revenue and profit growth, according to the Vistage CEO Confidence Index for Q2 2018. The latest Index shows average confidence levels at 104.1, a slight decrease from the 105.8 recorded in Q1 and significantly lower than Q4 2017, which registered 110.3.

Vistage CEO Confidence Index | Surveying CEOs of Small to Mid-sized Business Since 2003 (PRNewsfoto/Vistage Worldwide, Inc.)

"CEO optimism has held at favorable levels during the past year, but one issue of some concern is that CEOs anticipate slowing growth in the national economy during the year ahead," said Dr. Richard Curtin, director of research at the University of Michigan, who analyzed the data. "In contrast, many observers now anticipate a stronger pace of economic growth in 2018 and a modest slowdown in 2019."

Firms still voiced plans for robust expansion of their workforce and investment in new plants and equipment, although less than in the prior two quarters. Vistage Chief Research Officer Joe Galvin noted, "While 61 percent of CEOs plan on increasing employment, achieving efficiencies to reduce costs is a top priority."

The Q2 2018 Vistage CEO Confidence Index found:

Hiring and Investments:

The majority (61 percent) of firms plan to increase employment, compared to just 5 percent who plan to reduce their workforce
48 percent of those surveyed plan to increase investments in the business, while just 8 percent expect declines

Revenues and Profits

78 percent of all firms expect revenues to grow during the year, a significant increase above last year's 73 percent; just 6 percent expect a falloff in revenues
62 percent of CEOs of all firms anticipate profits to increase, just above last year's 60 percent

Read the full results and view the infographic.

About the Vistage CEO Confidence Index

The Vistage CEO Confidence Index, established in 2003, is a quarterly survey of small- to mid-sized business CEOs, presidents, and business owners about the U.S. economy. The Q2 2018 Vistage CEO Confidence Index includes responses from 1,467 U.S. CEOs, surveyed between June 4 and June 11 2018. Since its establishment in 2003, the Index has proven to be a reliable indicator for changes in GDP and employment, two to three quarters hence.

About Vistage Worldwide, Inc.

Vistage Worldwide is an organization designed exclusively for high-integrity CEOs and executive leaders who are looking to drive better decisions and better results for their companies. Our members — 22,000 strong in more than 20 countries — gather in trusted, confidential peer advisory groups where they tackle their toughest challenges and biggest opportunities. Leveraging the Vistage platform, our members have demonstrated the ability to refine their instincts, improve their judgment, expand their perspectives and optimize decision making. CEOs who joined Vistage in the past five years grew their companies 2.2 times faster than average small and midsize U.S. companies, according to a 2017 analysis of Dun & Bradstreet data. Learn more at Vistage.com.

SOURCE Vistage Worldwide, Inc.