Vistage CEO Confidence Index Survey Reveals 79% of CEOs are Investing in Company Culture and Employee Engagement to Drive Productivity
SAN DIEGO, Oct. 17, 2024 /PRNewswire/ -- Small and midsize business (SMB) CEO confidence increased in Q3 with the Vistage CEO Confidence Index rising to 85.1. Responses were captured in a survey conducted by CEO coaching and peer advisory organization Vistage just before the Federal Reserve announced interest rate cuts. The Q3 results marked a modest rise from the previous quarter, though below the 2024 high of 85.9 and significantly below pre-pandemic levels.
Despite the slight uptick in confidence, challenges that impacted businesses in the first half of 2024 persisted into the third quarter. While inflation has decreased gradually, the costs of goods and services remain elevated. Interest rates started to fall; however, 60% of CEOs indicated that they do not expect these cuts will impact their businesses until 2025. Hiring has become easier for more SMBs, and employee retention rates have stabilized as workforce velocity slowed.
"Another quarter has passed with only incremental movement in CEO sentiment. However, there is new light at the end of the tunnel: interest rate cuts," said Joe Galvin, Vistage's chief research officer. "CEOs are homing in on productivity to navigate ongoing economic challenges. Following the Federal Reserve's recent cuts, there's optimism that businesses can invest strategically in efficiency and innovation, setting the stage for sustainable growth and enhanced workforce engagement. The organizations best positioned for success are preparing for the anticipated growth cycle in 2025."
Vistage has measured SMB CEOs' sentiment on various economic and business factors every quarter since 2003. Analysis using ITR Economics' rate-of-change methodology has revealed the Vistage CEO Confidence Index to be a leading indicator of the U.S. Industrial Production Index nine months in advance.
Lauren Saidel-Baker, CFA and economist at ITR Economics, emphasized the need for strategic planning, noting, "Efficiency is the name of the game in today's economic climate. Businesses must ensure that their investments are strategic and purposeful rather than reactive. Leveraging AI and automation can provide a significant advantage, helping organizations stay ahead of the curve."
Q3 2024 Vistage CEO Confidence Index highlights include:
CEO economic pessimism eases following interest rate cut.
Increased focus on employee productivity and engagement.
■ Workforce development, including skills development for staff (77%) and leadership development (75%)
■ Process refinement and efficiencies (77%)
■ Automation (55%)
■ AI (40%)
Upcoming election concerns among CEOs.
CEOs remain conservative on investments and hiring.
See the full results of the Q3 2024 Vistage CEO Confidence Index at vistage.com/ceoindex.
About the Vistage CEO Confidence Index
Established in 2003, the Vistage CEO Confidence Index surveys small and midsize business CEOs, presidents, and business owners about the U.S. economy every quarter. The Q3 2024 Vistage CEO Confidence Index includes responses from 1,626 U.S. CEOs surveyed between September 3 and 17, 2024. Using ITR Economics' rate-of-change methodology, analysis has revealed that the Vistage CEO Confidence Index is a leading indicator of the U.S. Industrial Production Index 9 months in advance.
The Vistage CEO Confidence Index is recognized as the definitive voice of high-performing, high-integrity small and midsize business leaders. As a trusted resource, the Index provides world-class insights to inform decision-making for CEOs and other key leaders of small and midsize businesses.
About Vistage Worldwide, Inc.
Vistage is the world's largest CEO coaching and peer advisory organization for small and midsize businesses. For more than 65 years, we've been helping CEOs, business owners, and key executives solve their greatest challenges through confidential peer groups and one-to-one executive coaching sessions. Today, more than 45,000 members in 35 countries rely on Vistage to help make better decisions for their companies, families, and communities. The results prove it: Vistage CEO members grew their annual revenue on average by 4.6% in 2020, while non-members with comparable small and midsize businesses saw revenue decrease by 4.7%, according to a study of Dun & Bradstreet data. Learn more at vistage.com.
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SOURCE Vistage Worldwide, Inc.