Small biz CEO confidence in economy falls 21% in one year, shows Jan. 2019 WSJ/Vistage survey
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When asked to assess the recent performance of the national economy, just 32% of CEOs reported that the economy had recently improved, down from 70% last January. -
Economic optimism among small firms sank in the January 2019 survey to its lowest level since the presidential election. -
39% of CEOs plan increases in fixed investments in the next 12 months, down from 52% in last January’s survey. -
The proportion of CEOs that anticipate increasing their workforce in the coming year fell to 58% in the latest survey. -
Higher profits were anticipated by 57% of CEOs, down from 69% a year ago. -
Increased revenues in the year ahead are anticipated by 66% of CEOs, down from 83% last January. -
Tariffs were cited as having negatively impacted their business by 36% of all CEOs. -
Prospects for the economy were bleak, as only 14% expected improved economic conditions in the year ahead and 36% who anticipated a worsening outlook.
The economic optimism of small business CEOs has dropped significantly in the past year, according to new data from the Wall Street Journal/Vistage Small Business CEO Survey.
The survey, which polled 765 small business CEOs between January 8-14, recorded a CEO Confidence Index of 95.2. This represents a decline of 21% from last January, when the index measured 102.5. The current index is the lowest level recorded since the 2016 presidential election.
Dr. Richard Curtin, a researcher from the University of Michigan, attributes this decline to CEOs’ negative views about the national economy and uncertainty about the future, among other factors.
“While a decline in the pace of economic growth in 2019 has been anticipated for some time, the recent data reflect increased uncertainty due to a host of issues including the partial government shutdown, the impact of tariffs, instabilities in financial markets, the global slowdown, and the lack of clarity about monetary policy,” Curtin explained.
Download the report to learn more about the survey results, including:
- Prospects for the national economy this year
- Factors impacting the outlook for small business
- CEO expectations for profits and revenues
- Ratio of companies increasing their prices in 2019
About the Author: Joe Galvin
Joe Galvin is the Chief Research Officer for Vistage Worldwide. Vistage members receive the most credible, data-driven and actionable thought leadership on the strategic issues facing CEOs. Through collaboration with the Vistage community of…
This WSJ/Vistage Small Business report is very revealing. Take a good look. You can see serious market trends moving to a slower economy. Now what is your plan or are you just going to react after it hits?