U.S. chief executive confidence reaches two-year high as global outlook holds firm
DALLAS, May 9, 2017 - YPO , the premier chief executive leadership organization in the world, announced today that economic confidence in the United States continued to climb in the first quarter of 2017 (1Q 2017), edging up 0.3 point to 64.9, its highest level since January 2015.
The 1Q 2017 YPO Global Pulse Confidence Index indicates that chief executives in the United States remained the most confident in the world about the business climate, as reduced corporate tax rates and a more liberal regulation environment promise to create more business-friendly conditions.
More than half (52%) of U.S. business leaders reported that business and economic conditions had improved over the past six months, compared with only 13% who felt the economic climate had worsened.
Looking ahead, the majority of chief executives believed that conditions are set to improve further in the coming six months, with 56% predicting that the economic environment would get better over that period, whilst only 10% expected the landscape to deteriorate.
"Key economic indicators from leading and credible financial institutions suggest that GDP growth is likely to accelerate over the coming months," noted Eva Helene Yazhari, YPO member and Co-Founder and CEO of Beyond Capital Fund.
"There is a sense of cautious optimism and opportunity amongst business leaders, and chief executives will be keen to take advantage of this growth and are positioning their businesses accordingly".
Globally, the YPO Global Pulse Confidence Index edged up 0.3 point to 62.5 over the quarter, its highest level since January 2015. Confidence in the European Union (EU) remained flat at 60.9, while Asia climbed 2.1 points to 63.3, its highest level since April 2015. Africa is the second-least confident region globally, edging down 0.3 point to 54.4. Elsewhere, confidence in Latin America dropped 1.2 points to 57.1, while confidence in the Middle East and North Africa (MENA) region showed the biggest decline, sliding 4.3 points to 55.2. Non-EU Europe reported the lowest level of confidence in the world, falling 2.5 points to 51.8.
Future expectations in the United States
Chief executives positive about immediate prospects
Business leaders in the United States reported increased confidence when it came to each of the three main components of the YPO Global Pulse Confidence Index: measuring sales, hiring and fixed investment.
The YPO Sales Confidence Index for the United States climbed 1.2 points to 71.0, its highest level since January 2015. Almost three-quarters (72%) of chief executives expected revenue growth in the next year, while only 2% predicted a reduction in turnover.
Job creation looks set to improve in the United States, as the YPO Employment Confidence Index increased by 1.0 point to 62.2, its highest level in the seven-year history of the study. Almost half (47%) of all respondents expected to increase the size of their workforce over the next 12 months, compared with only 2% who expected to reduce headcount.
Remaining almost unchanged, the YPO Fixed Investment Confidence Index remained, edged up 0.3 point to 62.5, with 47% of respondents predicting an increase in fixed investment in the next 12 months, versus only 4% who forecasted cuts in investment spend.
YPO Global Pulse ® Confidence Index
The quarterly electronic survey, conducted in the first two weeks of April 2017, gathered answers from 1,216 chief executive officers across the globe, including 422 in the United States. Visit www.ypo.org/globalpulse for more information about the survey methodology and results from around the world.
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Contact: YPO Linda Fisk Office: +1 972 629 7305 (United States) Mobile: +1 972 207 4298 press@ypo.org
