Pages

Wednesday, February 4, 2015

U.S. CEOs Optimistic About the Economy and Plan on Hiring

America is pulling ahead as CEO's project a much brighter future with more hiring and greater investment. According to a report by the Young President's Organization (YPO) the U.S. bucked trends of other nations by raising their confidence index from 64.2 to 65. This optimism is a full two points above other countries and has prompted some positive decisions in company strategic planning that will bode well for the American worker.

Net importers of oil were more optimistic than net exporters. The reason this is the case is because exportation of a natural resource can be lucrative but is also unsustainable and limited. Those nations that reaped the rewards in the past may find their economies struggling now that prices are changing and demand is less. Importing nations find the cheaper oil prices an advantage for their production and economy through lowered input costs.

The report had three interesting expectations over the next 12 months that include:

-70% Sales to Increase/26% Sales to Stay the Same/4% to Sale to Decline
-47% Fixed Investments to Increase/48% Fixed Investments to Stay the Same/5% Fixed Investments to Decline.
-45% Expect to Hire/51% Hiring to Stay the Same/4% Hiring to Decline.

The optimism among key decision makers, such as CEOs, help to push additional investment and hiring. You will notice that only a few believe sales, investments, and hiring will decline over the next 12 months while the far majority either believe it will stay the same or improve. Most CEOs feel that sales will improve and this in term could fuel additional investment and hiring.

Those companies that are working with less than full capacity are likely to soak up that slack before deciding to hire. Many companies have adjusted and transformed during The Great Recession and are in a lean position to grow. Future profits are expected as consumer confidence rises and additional economic activity experienced.

http://www.ypo.org/4q14us/

No comments:

Post a Comment