The CEO Confidence Index, our monthly gauge of CEO expectations for the future of business conditions rose 1.7% in May to 5.96 out of a possible 10. This increase in expectations comes after a decline in CEO confidence in both March and April. The Index is up 3% for the year.
The number of CEOs expecting to see increased revenues over the next year increased almost 5% in May to 74.1%, but the number of CEOs expecting to see increased profits declined by as much to 59.6%.
One CEO said, “While I see opportunity for revenue growth, which is encouraging, the pressure from large OEMs (original equipment manufacturers) is greater. The pressures for cost reductions is high in spite of continual material price increases.”
Another said, “Company growth in revenue and profitability over the next year needs to primarily come from adding new customers (taking market share from larger competitors) as opposed to from the general economy that continues to grow very slowly.”
So, CEOs hope for growth, but that growth doesn’t look like it’s coming directly from the overall business conditions in the U.S.
The number of CEOs expecting to grow their workforce over the next year, however, has increased since April, jumping from 42.5% to 49.2%.
Gary Minor, Executive Director of the 21st Century Leadership Institute told Chief Executive, “Current employees are at peak capacity; pushing them any harder will lead to less, not more productivity. As a consequence, it is time to start hiring again and that trend is heading up. We are seeing companies once again, believe that investing in their people, both current and new employees, is a wise decision for the first time since Q4 2008.”
As we’ve seen for quite a while, there are still continuing concerns about politicians’ impact on the economic climate and many CEOs are anxious for the November elections.
CEO Confidence Index — May 2012
Respondents: 244
| April 2012 | May 2012 | Monthly Change | |
| CEO Confidence Index | 5.86 | 5.96 | 1.7% |
What do you expect overall business conditions to be like one year from now on a 1 -10 scale? (10 = Excellent)
What is your assessment of current overall business conditions on a 1-10 scale? (10 = Excellent)
Over the next 12 months, what changes do you forecast for your firm compared to the past 12 months?
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1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
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2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
