Vistage International, the San Diego-based executive peer coaching organization, said CEOs are less optimistic about their company’s future prospects because of renewed concerns about the national economy, causing a drop in a confidence index in the second quarter.
The Vistage CEO Confidence Index, taken from a recent survey of 1,650 Vistage members, declined from 105.1 in the first quarter to 92.8 in the second quarter. That’s almost the exact same decrease the index took in the first half of 2011, and the third consecutive year the index decreased at midyear, Vistage said.
The common elements in each year’s retreat are weakening conditions in the economy and concerns over economic policies, Vistage said.
Despite the index decline, it’s closer to the 10-year peak of 115.6 than its low point of 48.7.
Also, the CEOs see improved performance at their own firms, with two-thirds anticipating higher revenue growth and half expecting to hire more workers than they had in the second quarter. Eight percent said they expected to reduce their staffs, up from 5 percent in the first quarter.