Q2 2014 Vistage CEO Confidence Index Results Released Today: Despite Optimistic Economic News Reported in Survey, Hiring is a Top Concern - WLOX.com - The News for South Mississippi

Q2 2014 Vistage CEO Confidence Index Results Released Today: Despite Optimistic Economic News Reported in Survey, Hiring is a Top Concern

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.

SOURCE Vistage International

SAN DIEGO, July 1, 2014 /PRNewswire/ -- The latest Vistage survey found that CEOs continued to feel confident about today's economy, as the Vistage CEO Confidence Index was virtually unchanged from the levels recorded in the prior two quarters. The Vistage CEO Confidence Index was 101.0 in the 2nd quarter 2014 survey, nearly identical with the 101.3 in the 1st quarter and the 101.5 in the 4th quarter of 2013. This was the best three-quarter performance since 2005. The constancy of economic optimism is all the more surprising given the drop in GDP during the 1st quarter, indicating that CEOs discounted last quarter's decline as an aberration due to the harsh winter.

To view the multimedia assets associated with this release, please click: http://www.multivu.com/players/English/7261351-q2-2014-vistage-ceo-confidence-index-hiring-top-concern/

How are CEOs leading in this economy? Ask a Vistage member!

Nonetheless, the extent of the falloff in GDP and the delay in the anticipated strong spring rebound is likely to have constrained CEOs from voicing more optimistic expectations in the recent survey. While legislative proposals regarding minimum wages and overtime pay are top concerns, the most pressing concern of firms today have more to do with hiring new employees to expand their business. Rather than sensing a good deal of labor market slack due to high levels of long-term unemployed and labor force dropouts, nearly one-third of all CEOs mentioned staffing needs as the most critical issue now facing their firm. Concerns about staffing were mentioned twice as frequently as economic uncertainty, which was the 2nd most critical issue reported by firms. The required wage increases required to attract new hires raise the potential for renewed inflation, affecting both facets of CEOs' most critical concerns.

Economy Maintains Strength. Half of firms reported that the economy had recently improved, just above the 48% who reported gains last quarter and the 49% in last year's 2nd quarter. When asked to assess the year ahead prospects for the economy, 38% expected an improved pace of growth, just ahead of the 37% recorded last quarter and the 36% in last year's 2nd quarter survey. Just 10% expected the rate of economic growth to slow in the year ahead. Overall, the data provide convincing evidence that the 1st quarter drop in GDP was largely discounted, with firms maintaining a positive outlook for the year ahead.

Robust Hiring Plans. Among all firms in the 2nd quarter survey, 57% planned on expanding their payrolls, just below last quarter's 58%, which was the highest level since the start of 2007. These robust hiring plans were confronted by significant challenges to find and hire qualified staff, more consistent with a tight than a slack labor market. Among all CEOs, 30% mentioned hiring new staff was the top business issue that they now face, well above the 16% who mention the deleterious impact of economic uncertainty. CEOs' views of labor market conditions make it more likely that wages will begin to rise in the year ahead. Overall, rising wages and health benefits are likely to be passed along to their customers. Indeed, 43% of CEOs in the survey anticipated that the prices of their products or services would increase in the year ahead.

Robust Investment Plans. Planned increases in investments in new plant and equipment were reported by 46% in the 2nd quarter 2014 survey, barely below last quarter's 47%, which was the highest level in four years. Reductions in investments during the year ahead were expected by just 9% of all firms. Planned investments were at the highest level in the 1st half of 2014 than any time since the start of 2011.

Strong Revenue Growth Expected. Revenue gains were expected by 73% of all CEOs in the 2nd quarter survey, between last quarter's 74% and last year's 68%. Just 6% anticipated declines in their revenues during the year ahead. The strong expected growth in revenues makes staffing needs critical.

Majority Expect Rising Profits. Among all CEOs, 56% anticipated increased profits in the 2nd quarter, between last quarter's 57% and above last year's 52%. The stability of profit expectation at the highest levels recorded in the past two years will enable the implementation of robust hiring and investment plans.

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 about the U.S. economy. The Q2 2014 Vistage CEO Confidence Index includes responses from 1,524 U.S. CEOs, surveyed between June 9 and June 18, 2014, with a margin of error of 1.6 percentage points. Since its establishment in 2003, the Index has proven to be a reliable harbinger for changes in GDP and employment, two to three quarters hence.

about Vistage International
Founded in 1957 and headquartered in San Diego, California, Vistage assembles and facilitates private advisory boards for CEOs, senior executives and business owners. Vistage members participate in monthly, Chair-led private advisory board meetings. More than 18,000 members in 15 countries also have access to one-to-one executive coaching, expert speakers, and our global network of business leaders.

12 Month Economic Outlook

 

CEOs? Most Significant Business Issues

 

Graph: CEOs' Planned Hiring

 

Q2 2014 Vistage CEO Confidence Index Infographic

To view the multimedia assets associated with this release, please click: http://www.multivu.com/players/English/7261351-q2-2014-vistage-ceo-confidence-index-hiring-top-concern/

©2012 PR Newswire. All Rights Reserved.

  • Most Popular StoriesMost Popular StoriesMore>>

  • Two teens charged with Gulfport man's murder

    Two teens charged with Gulfport man's murder

    Tuesday, July 29 2014 3:00 PM EDT2014-07-29 19:00:30 GMT
    Two Gulfport teens are charged with murder after police say they shot Lamont Hayes in his home last week and left him to die.More >>
    Two Gulfport teens are charged with murder after police say they shot Lamont Hayes in his home last week and left him to die. Monday night, investigators tracked down Jalen Shaquille Williams, 19, and arrested him at his home. Rashad Rejohn Johnson, 17, was arrested Monday at the Harrison County Juvenile Detention Facility, where he was being held on an unrelated charge.More >>
  • SRHS to Close Two More Clinics

    SRHS to Close Two More Clinics

    Tuesday, July 29 2014 10:50 AM EDT2014-07-29 14:50:29 GMT
    Singing River Health System has announced the closure of two more primary care clinics as part of a realignment program. The Gautier and D'Iberville facilities will close August 29.
    More >>
    Singing River Health System has announced the closure of two more primary care clinics as part of a realignment program. According to SRHS officials, the Gautier and D'Iberville facilities will close August 29.More >>
  • Coroner: Gulfport murder victim was shot in the groin

    Coroner: Gulfport murder victim was shot in the groin

    Thursday, July 24 2014 6:54 AM EDT2014-07-24 10:54:09 GMT
    According to Harrison County Coroner Gary Hargrove, Lamont Hayes, 41, was shot in the groin area and bled to death just a few hours later Tuesday night.More >>
    An area of Gulfport still reeling from the brutal murder of a child last week was hit with another violent death Tuesday night. According to Harrison County Coroner Gary Hargrove, Lamont Hayes, 41, was shot in the groin area and bled to death just a few hours later.More >>
Powered by WorldNow

208 DeBuys Road
Biloxi, MS 39531
(228) 896-1313

FCC Public File
EEO Report
Closed Captioning

All content © Copyright 2000 - 2014 Worldnow and WLOX. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.