THE YEAR AHEAD
Deeper in the numbers, a higher proportion of CEOs are also projecting growth over the next 12 months across profits, revenues, hiring and capex in December compared to the month prior, finishing the year with good news.
Some 63 percent of CEOs are now projecting profit growth over the next 12 months, compared to only 47 percent last month. The proportion is now back in line with Q3, before the dips in confidence and outlook in the fall.
More CEOs are also optimistic that revenues will increase by this time next year, with 73 percent forecasting improvements compared to only 56 last month.
The proportion of CEOs planning increases in capex over the next 12 months shot up in December, to 49 percent, after two months of consecutive drops—reaching the highest proportion since June. And after a 13 percent climb in November, the proportion of CEOs planning increases in hiring ticked up another 6 percent, to 44 percent.
Still, for many of those we polled, there was broad agreement that there are plenty of issues for business to contend with—including persistent inflation, a tight labor market, uncontrolled government spending, geopolitical turmoil and an unpredictable stock market—and those will all remain worries into the new year.
“While the pandemic has officially passed, we are seeing a number of businesses we deal with that continue to struggle with a significant talent drain, remote work schedules, and general inflation,” says John W. Gessert, President and Chief Executive Officer at American Plastic Toys Inc. “There seems to be a pandemic ‘hangover’ for any number of associated companies.” His rating of current and future conditions? Five out of 10 for both.