|Senior Executives Cautiously Optimistic amid Slow Economic Recovery, Expect Revenue Increases but Higher Cost Pressures over Next 12 Months|
Based on a quarterly survey measuring the assumptions of nearly 400 senior executives about future economic conditions, the Business Barometer found that at the start of 2010, executives are more optimistic about future revenue growth. However, continued uncertainty about consumer demand, coupled with heightened costs pressures, are dampening business executives' outlook.
"Although an improvement over the fourth quarter of 2009, our Business Barometer reveals that executives are still cautious in their economic outlook for the year ahead, confirming that the recovery remains fragile," said Oleg Polishchuk of The Corporate Executive Board. "There are hopeful signs that businesses are starting to experience growth with most senior executives saying they expect a boost in revenue from rising new orders and the introduction of new products, and two-thirds expecting sales to new customers increase compared to last quarter. Furthermore, pent-up demand for CAPEX (hardware, software, facilities and manufacturing equipment) may boost growth as well."
"Companies are adopting a disciplined and balanced approach to growth. While we are starting to see the first signs of increasing capital investments, companies are also looking to maintain and advance efficiencies in G&A," said Michael Griffin of the Corporate Executive Board.
The Corporate Executive Board Business Barometer is a forward-looking index of expected business conditions condensed from a survey of more than 370 senior executives in North America across 33 industries. It measures the assumptions of senior executives across multiple disciplines on the impact that 12 key economic indicators and drivers will have on their business in the year ahead.
Early Indicators of Growth
In the last three months, The Corporate Executive Board Business Barometer has measured improvements in executives' outlook on sales, investments, production and access to credit - signs of future business growth.
Factors Contributing to Increased Cost Pressures
Compared to last quarter, business executive concerns about cost pressure have increased.
Operating the largest, most powerful executive peer-to-peer business network, the Corporate Executive Board has more than 25 years of experience providing research, analysis, insights and resources on all issues related to strategy, operations and general management.
For more information on the Corporate Executive Board's Business Barometer, visit http://cebviews.com/economic-outlook/.
About The Corporate Executive Board
The Corporate Executive Board Company drives faster, more effective decision-making among the world's leading executives and business professionals. As the premier, network-based knowledge resource, it provides them with the authoritative and timely guidance needed to excel in their roles, take decisive action and improve company performance. Powered by a member network that spans over 50 countries and represents more than 80% of Fortune 500 and 70% of FTSE 100 companies, The Corporate Executive Board offers the unique research insights along with an integrated suite of members-only tools and resources that enable the world's most successful organizations to deliver superior business outcomes. Based in Arlington, Virginia, the Company employs more than 2,000 professionals in eight offices around the world. For more information, visit www.exbd.com.
SOURCE: The Corporate Executive Board
Corporate Executive Board