Chief Executive magazine’s CEO Confidence Index, the nation’s only monthly CEO Confidence Index, dipped slightly in September, decreasing 3.4%, falling to 86.3.
The Employment Confidence Index lost 11.7%, falling to 70.8. One CEO commented “Employment will continue to be bad until next year. But, this is great opportunity to increase automation or IT to replace labor to be competitive.” Another CEO added, “The economy is still in a flat mode. Companies and senior executives are being very careful about spending on capital and adding manpower“.
The Business Condition Index dropped 7.6%, falling to 83.1. Business is bad, but those with strong balance sheets are in a great position to make investments and capture market share.
The Current Confidence Index decreased 3.9% falling to 62.3. There is optimism in some industries. A CEO commented to Chief Executive, “We see a steady increase in demand which is enabling us to ramp up production efficiently; we are adding capacity, revenue, and profits faster than we are employees. At some point soon we will begin adding employees as well.”
The Future Confidence Index, which measures the outlook on employment, economic and capital spending opportunities over the next quarter dipped 3.2% dropping to 102.5. The administration’s agenda remains a concern for many CEOs. “November elections are the next chance for a change in the economic mood,” stated one CEO. Wess J. Schmidt, President & CEO, Strategic Business Planning and Development, added, “We don’t see any major changes to the economy or the employment status for the near future until Congress enacts major policy decisions to help the economy. One hope is the mid-term elections where fresh new voices will stimulate the “old guard” into making quick rational decisions.”
The Investment Confidence Index gained 4.0% rising to 100.9.
CEOs are anxiously awaiting the outcome of the midterm elections. The economy seems to be in a holding pattern until more information is available concerning taxes, policy and regulations.
CEO Confidence Index, September, 2010
Current Confidence Index
Future Confidence Index
Business Condition Index
Invest Confidence Index
Employment Confidence Index