Rafael Pastor appeared as a guest on CNBCon Monday afternoon wherein he released a new economic survey of Vistage CEOs outlook on the economy. In this 5 minute CNBC video clip (Please endure the 20 second lead ad), Pastor relates that the Vistage CEOs surveyed (representing over 14,000 member companies worldwide, with 10,000 member companies in the USA) are experiencing a modest lift in this economy, and are forecasting growth two quarters out, and a better economic forecast in 2011 than the market specialists are forecasting. (Note: Vistage CEOs may not be a representative sample of small businesses because independent research shows that Vistage member companies consistently outperform their non-participating peers.) Despite not being a totally representative sample, the Vistage CEO Confidence Index is a reliable leading indicator of GPD growth two quarters out. Pastor goes on to say that Vistage member companies do not forecast significant job growth in 2011. Rather, Vistage CEOs are focused on doing more with less, focusing on international markets, technology productivity enhancements to reduce costs, and operating their companies more profitably with little intention of rehiring many of those that were laid off earlier in the recession.
Other interesting survey highlights include:
- 92% expect health care costs to go up
- 67% say their business will be hurt if the Bush tax cuts are not extended
- 62% expect Republicans to control the November elections
- 52% say they would not start a new business in the current economic climate