CEO optimism continues to increase in wake of new presidential administration
The January WSJ/Vistage Small Business CEO Survey found that CEO confidence in the economy has continued to rise since the results of the November presidential election. The WSJ/Vistage Small Business CEO Confidence Index rose to 113.5 in the January 2017 survey, marginally above last month’s 112.0 and well above last year’s 98.8. Three months ago, just 23% expected the economy to improve during the year ahead, which rose to an astounding 60% in January.
“CEOs are ready to do their part by increasing hiring and investment spending, and eagerly await reductions in taxes and regulations,” said Dr. Richard Curtin, Research Professor from University of Michigan.
Additional highlights include:
Economy expected to improve. 60% of CEOs expected the economy to improve in January, nearly three times October’s 23%, and the most favorable economic outlook recorded since the first survey in mid-2012.
Hiring plans. The biggest challenge confronting firms is their need to expand hiring in an already tight labor market. 61% of CEOs said they play to increase hiring in the next year. 23% of CEOs said finding potential employees with work experience has become much more difficult than a year ago, and 25% reported it took substantially more time to train new hires than a year ago.
Affordable Care Act. 45% of CEOs said an Affordable Care Act repeal would help their businesses, 12% thought it would hurt, and 43% said it would have no impact.
Revenues and profits. Despite the upward pressure on employment costs, expected increases in revenues and profits remain at the best levels in nearly two years: 77% expect higher revenues, and 63% expect higher profits. These expectations are much less volatile than prospects for the national economy, acting to bring stability and coherence to small business planning processes.
Read the WSJ/Vistage Small Business CEO Survey
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