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Despite Employment Concerns, CEO Confidence Continues to Rise Market Wire
Chief Executives Grapple Over Ways to Grow Their Top Lines
July 15, 2003
MONTVALE, NJ -- (MARKET WIRE) -- Chief Executive magazine, the definitive source of information for more than 42,000 chief executive officers and their peers, announced today that the CEO Confidence Index rose for the third consecutive month. Although the increase was modest -- a slight jump from 121.9 to 123 -- it raised CEO Confidence to its highest level since the magazine began measuring it in October 2002. Despite short-terms concerns about employment, respondents to the survey foresee future economic growth and are wrestling with how to grow their companies’ top lines.
Unlike in June, when all components of CEO Confidence went up, July’s survey yielded more mixed results. For example, both Current Confidence and the Business Condition Index showed slight declines, while Future Confidence and Investment Confidence posted incremental gains.
CEOs’ outlook on employment proved the only category in which the latest results veered significantly from those in June. When asked to rate current employment conditions in the United States, a mere 3% said, “good,” down from 6.4% a month earlier. The results dovetail with a recent U.S. Department of Labor report showing that unemployment rose to 6.4 percent in June, a nine-year high. However, the survey respondents expressed optimism (38% vs. 28.9% this month compared with last) that the situation would improve.
A bonus question asking CEOs how they are trying to grow their companies’ top lines yielded interesting results. Respondents were nearly evenly divided in embracing the following strategies: expanding marketing and branding; increasing their ability to deliver new products and services; boosting the size or productivity of sales; and developing new technology and products.
“As a result of increased confidence, CEOs are looking to seize business and economic opportunities," says Edward M. Kopko, Chairman and CEO of Chief Executive. “Their course of action clearly suggests increased investment in marketing, selling and new products.”
The CEO Confidence Index is conducted monthly by Chief Executive magazine, a definitive source of intelligence for more than 25 years about CEOs and the strategic issues they face. Each report is based on an e-mail survey of up to 600 readers of the magazine. In July, there were 509 respondents. The survey was conducted from June 25 to July 3.
The Index is released on the third Tuesday of each month. For additional information regarding the confidence of public- and private-company CEOs, details about regional CEO attitudes on employment, investment and business conditions, as well as confidence differences between service and nonservice industry CEOs, visit our full report at www.chiefexecutive.net/ceoindex.
Chief Executive is a controlled circulation magazine that reaches 42,000 chief executive officers and their peers. It is published 10 times a year and reaches a total readership of 143,000. Chief Executive Group facilitates "Chief Executive of the Year," a prestigious honor bestowed upon an outstanding corporate leader, nominated and selected by a group of his or her peers. Jack Welch, Bill Gates, John Chambers, Michael Dell and Sandy Weill are just some of the leaders who have been honored throughout the award's 17-year history. Chief Executive also organizes roundtable meetings and conferences to foster opportunities for top corporate officers to discuss key subjects and share their experiences within a community of peers. Visit www.chiefexecutive.net for more information.
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