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?