CEO confidence rebounds, fueled by decreasing pessimism, improving prospects for revenues

Confidence Rebounds

Signs of life in the economy and an increase of business activity has led to an increase in confidence of small and midsize business CEOs. The Vistage CEO Confidence Index rebounded to 82.8 Q3 2020; while not at peak recovery, this is just 2.6% below Q3 2019.

While all factors that comprise the Index improved from last quarter, the biggest driver of the rebound is decreasing pessimism about the future U.S. economy. September’s survey found that 83% of CEOs expect the economy to worsen in the year ahead, a 10-point improvement from 93% last quarter.

SMB Revenue Expected to Improve

While the Index is calculated quarterly, an analysis of survey data collected monthly since the pandemic began illustrates the improvements in revenue expectations over time. A major factor in rebound in CEO confidence in Q3 is positive revenue expectations with 63% of CEOs expecting improved revenues in the next 12 months, on par with the data recorded in March.

Download the Q3 2020 Vistage CEO Confidence Index Report

Download the Q3 2020 Vistage CEO Confidence Index Infographic