The executive consulting firm Vistage International, based in San Diego, says today that its latest survey of "business leaders" in Philadelphia conducted this past August has found that their confidence in the national economy in the third quarter has dipped along with CEOs nationwide, and some plan to put investments "on hold" to brace for a slowdown.
The survey (Download the press release) found that 115 regional chief executives of small- and mid-sized businesses who responded to the survey had a Confidence Index of 81.5 percent. That's 3.4 points down from 84.9 pecent in the prior second quarter. It's down 5.1 points from 86.6 percent a year earlier. The national index is also down to 81.4 percent.
Unfortunately, the survey does not ask the local CEOs what they feel about the local economy. And just 115 people answered the survey (taken in the middle of vacation season Aug. 16-24), giving the local results a pretty big margin of error - almost 8 percent, compared with 2 percent for the national survey. So it's probably best to take this survey as an anecdotal round up of opinions on national trends - for what that's worth. The 115 local execs generally expect a slowdown, but not a turndown, in the national economy. Vistage said they "still expect strong growth in their revenues and have no plans to cut payroll. Just like the prior quarter, recruiting and retaining talent is the most important challenge executives face, although uncertainty about the economy may slow hiring."
Vistage quotes its consultant on the survey, Richard Curtin, director of consumer surveys at the University of Michigan at Ann Arbor, as saying: “Of the Philadelphia business leaders surveyed, the concern is not only about the economy, but also about the availability and cost of credit to their companies. Because of this, executives plan to put some of their planned investments on hold for the remainder of the year.”
Vistage quotes its Mid-Atlantic regional vice president, Michael Hagy, formerly of Pinnacle Performance Group in Philadelphia, as saying: “CEOs are apprehensive about their company’s optimism going forward in the up-coming quarters. As well, our members are resistant to downsizing their productivity, they feel a sense of security keeping a steady pace rather than growing their company during the current financial slump. They’re watching their steps a little more than they have in the past.”
