Skip to comments.66 Percent of CEOs Plan to Freeze or Downsize Workforce Size
Posted on 08/19/2011 6:28:28 PM PDT by 2ndDivisionVet
Despite a politically and economically tumultuous start to the month of August, CEO confidence stayed steadily pessimistic. Although the index did rise for the first time in months and by only 0.4 percentit still remains at a low 5.30 out of a possible 10. The Index, Chief Executives monthly gauge of CEOs perceptions of overall business conditions, has seen a 17 percent drop from Februarys 2011 high of 6.39. Now, only 45.3 percent of CEOs expect business conditions to be at least good in the next year, up from Julys 41 percent.
Despite the debt ceiling drama and the S&Ps downgrade, the view of current conditions only dropped .01 from July to 4.64 out of 10.
One CEO attributes the steady, albeit tepid, numbers to individual company performances versus business conditions as a whole, Individual companies may do well coming out of the recessions, but the cyclical economy will accelerate. This will be exacerbated by poor domestic policy in a world of countries hungry to compete.
Expectations for the future remain wary and generally pessimistic. Fewer chief executives expect to see an increase in revenue over the next year as compared to July; only 59.11 percent expect a revenue increase versus Julys 60.6 percent. This is a 20 percent drop from April when 74 percent of CEOs expected to see increased revenues.
Just over half of CEOs do, however, expect to see an increase in profits, a slight improvement over last month. In July, 52 percent of chief executives expected a profit increase, whereas 53.13 expected a profit increase in August.
Julys better-than-expected unemployment numbers also seem to be echoed here. The unemployment rate moved down slightly to 9.1 percent and 34.43 percent of CEOs expected to increase hiring over the next year (although the 66 percent majority of CEOs dont expect to increase hiring).
Following the debt ceiling circus, attitudes toward the government have remained sour. One CEO said, As I approach my 44th year in business, the last 20 as CEO, I can never remember a time when I felt so disenfranchised from our leadership in Washington. They seem determined to continue their ongoing anti-business attitude and to frustrate small and mid-sized businesses by uncertainty on taxes, government regulations, and simply too many bureaucratic restrictions. We desperately need a change in Washington.
CEO Confidence Index August 2011
(CHARTS AT LINK)
That’s okay. Barack the Kenyan has “a plan” that he’s going to “unveil” when he comes back from his vacation. We’re all getting jobs with the federal government!!!
I don’t think the heat from this will go away that quick....
Tax uncertainty, regulations, restrictions and anti-business policies take a lot of work. The Cretin-in Chief needs to relax.
Hank Rearden, you are a dumbass. love Barack
A friend of mine got laid off today.
How bad does the economy have to be for a friggin’ MORTICIAN to get laid off???
His plan is the destruction of the United States. Count on it. This guy has to be removed from office so this country and its people can start putting things back on the road to prosperity. I don’t believe we can wait until the next election. Congress needs to stand up and say enough. Even Democrats are beginning to see what this President is doing. It has to stop and stop now.
Isn’t that what they have been doing?
Hope for Spare Change
More people cremating because they can’t afford funerals?
I always thought the death business was recession proof!
Forget it, we won’t see a hope of real recovery until the Kenyan Klown is out of office, if even then.
I keep saying that this kind of economic disaster would force a resignation of the Prime Minister in every parliamentary system, and likely the 1st Secretary of the Party in most Communist systems of yore, if you know your history of Communism. Here in Paradise, we are stuck with the f***er for 4, and given the flaws of our system, for 8 years.
Opening sentence in the article:
DESPITE a politically and economically tumultuous start to the month of August, CEO confidence stayed steadily pessimistic.
Wouldn’t it make more sense to say:
BECAUSE OF a politically and economically tumultuous start to the month of August, CEO confidence stayed steadily pessimistic ?
Probably what they meant. Some 23 year old intern or junior reporter I’m guessing. No one has editors anymore.
Don’t you see that it’s the evil corporations and rich people (150,000+) that are doing this!! Oh....and lack of Health Care!.....Oh.....and Global Smarming!......and.....RACISM!
Obamacare, Obamacare, Obamacare.
Thank you, Obamacare.....
Aren’t you glad Democrats in Congress didn’t bother reading the bill, before passing it?
I couldn’t have come up with a more poisonous agenda for recovery than Obama has.
There is plenty of pent-up demand here in the US. Cash sitting on the sidelines. Hungry people wanting to work; the newcomers and recent grads, the older folks wanting to have some assurances for their future, the tradesmen who have been idled by the downturn, etc.
They are all like horses in the gate, ready for the signal.
Its coming in November 2012. You betcha!
Yes, worse, a large percentage aren't even buying urns.
I always thought the death business was recession proof
I thought so too. Apparently not...
I don’t normally play grammar police. I don’t want to be that guy.
Indeed, right now just in the USA companies are now sitting on US$2 TRILLION in liquid assets and not using them, out of fear of the declining economy and paying for increasing government regulations/mandates from the Obama Administration. I think there is increasing fear we could see a repeat of what FDR did--force private holders of precious metals to give up coins and bullion blocks but go one step further: seize a large fraction of the companies' liquid asset holdings, essentially centralizing control of the US economy altogether.
Congress is like a fa*t in the wind until the people say enough...and they stand up.
If I remember correctly, not only did FDR grab the gold but he also had a tax on “retained earnings” passed to grab even more. His rationale was that the corporations should be using that money to create jobs even if they were precluded from doing it realistically through government interference and control.
66%?! That’s not much, only 2/3, not like it’s a majority or somthing...
Fed up with Obama and Congress? SO AM I!!
Altogether now: The tax rates in Feb 2012 will be?
Crickets? Do I hear crickets?
There’s your problem, Zero. Nobody has the slightest idea what kind of unholy Hell you’re plotting next. And that’s why your next job will be in the Twilight Zone.
Another example of The Rising Tide of Racism in America! (trademark)
Without o-POS the flood gates could open. However, most of the clap trap that this bunch of vermin have passed needs to be repealed and then some. Not only is to o-POS agenda a black cloud over the country so is a whole heck of a bunch of other stuff... just kill off the EPA, OSHA, DOE, HUD, HHS ETC.
I have been planning a new business venture with every intention of a product Made in America. By the time I got through with the business plan and all the crap it takes to get things done here... it’ll probably be made in China or somewhere. No matter what, the climate is wrong with o-POS in the District of Corruption.
Some of the latest labor “right” stories are enough to scare you to death. You can’t even fire terrible employees without some damn labor judge making them eligible for unemployment. The state insurance funds are so broke they are coming back on the employer for unemployment.
>> Freeze or Downsize Workforce Size, 2ndDivisionVet wrote:
Hey! What a great time to take a 10 day luxury vacation!!
If the American Revolution was at the direction of this idiot...
Welcome to Obama’s reality, class of 2012. Good luck finding a job that does not involve flipping burgers or stocking shelves, if you can find those.
From what I understand, 70% of corporate political donations (and I would venture to say the same percentage of CEO's) went to demoRAT in 2008's elections, especially to 0dumb0 the commie pig candidate at the time.
I work for a large multi-national corporation and our CEO was just slobbering over 0dumb0 during the 2008 election timeframe and especially during the "heady" first 6-7 months of 0bumb0 slamming his trillion dollar programs through Congress with complicity of demoRAT socialists, and racking up a record $4 trillion deficits in his first 24 months. Odumb0 was featured predominantly on our corporate intranet company website during the first 4-5 months of 2009, which was a first to have a blatant partisan politician like 0dbumb0 featured EVERY DAY on our company intranet website for those first 4-5 months of 2009. Unbelievable! I don't remember GW Bush's name even being ever mentioned on our intranet company website in 8 years of his time in office, unless it likely done so in a negative, critical way.
So my questions to this CEO and the other 70% dumb ass CEO's who contributed & voted for the kenyan commie pig, are this.... WTH were you thinking, you bunch of dumb asses? You elect a guy to be president simply because he is black (well 1/2 black, we won't consider the 1/2 white)? How stupid can you CEO's (including my company CEO) be? Did you ever stop to ask yourself what the commie pig has ever accomplished or achieved, besides being the perfect affirmative action candidate and a radical socialist commie pig?
Personally I would love to take the 70% CEO's and their top execs who voted for 0dumb0, into separate rooms, and just beat the living sh_t right out of them for being so stupid to contribute financially and put this unaccomplished, radical, commie pig into the highest office of the greatest nation in the history of the world.
Another personal opinion, I would bet that most of the 70% CEO's who supported 0dumb0 in 2008, will do so again in a heartbeat in 2012.
These CEOs are immoral, unprincipled, devious, deceptive & greedy, and have no personal moral convictions or standards, other than their own privileged hedonistic lifestyles. They contribute more money to demoRATs including 0dumb0, because they take advantage of the Pay to Play game. The more money they give to demoRATs & Odumb0, the more insider access they will be given to the WH or free junkets with congressional senators or House reps at taxpayers expense. Repubs don't play the Pay to Play game as much or effectively as the demoRATs and therefore less CEO donations flow to Repubs.
That's the incestuous nature of Big Business's relationship & workings with Big Gubmint under the regime of 0dumb0. You want influence or an audience with 0dumb0? You gotta pay first!
“How bad does the economy have to be for a friggin MORTICIAN to get laid off???”
Obama has triumphed over racism, economic turbulence, and now death itself!
“They are all like horses in the gate, ready for the signal.”
The CEOs are as well, waiting to hire the Hispanics that are no longer being deported.
Not if English isn’t your native tongue or... if you’re a liberal flak.
Not if English isn’t your native tongue or... if you’re a liberal flak.
Hello, That Guy.
It has to be really dead out there, I guess.
Darn it. Have I grammar-policed you before? Sorry.
Because of your post, I took the time to read further into the poorly written article, and what the anonymous author actually meant was : Despite a politically and economically tumultuous start to the month of August, CEO confidence stayed steadily OPTIMISTIC, - not pessimistic.
Stocking shelves? With what?
Note the empty pallets...
(Of course there are exceptional, quality CEOs as well.)
Think of all the jobs that were created or saved to carefully and artfully arrange all those empty pallets.
Without Obama that person might be unemployed now, just like the hundreds of workers who would be loading moving and unloading those pallets.
You got it! None of those federal agencies can hang their hat on an article of the Constitution authorizing their activity.
They may find some young citizens fighting for those jobs much as the young Irishmen once muscled their way into the American landscape...
“They may find some young citizens fighting for those jobs much as the young Irishmen once muscled their way into the American landscape...”
The Irish were lucky in arriving at a time when the US needed soldiers, miners and railroad laborers; the last relative of mine to come over had to serve a tour in Vietnam before being granted citizenship.
A key difference is that the Irish were legal.