Introduction
This CEO confidence survey for the first quarter carried out by Industrial Psychology Consultants. The CEO confidence survey is conducted to measure the economic future as seen by the CEOs. CEO are asked questions related to the economy as well as challenges they will be facing in their companies. The survey includes questions on obstacles to hiring new employee, reasons for company layoffs, industry concerns, economic worries, and short-term/long-term outlooks on the economy. The questions target CEOs due to their oversight of big investment decisions that will have an effect on the economy as a whole. The survey results help give traders and investors insight and valuable data about upcoming economic conditions. Data for this survey was collected from February to March 2014 and indicates the CEO confidence levels for the first quarter of 2014.
This report contributes to Industrial Psychology Consultants goal to help business leaders understand the forces transforming the local and global economy, improve company performance, and work for better national policies. The report is in-line with our mission of maximizing returns on human capital. As with all Industrial Psychology Consultants research, this work is independent and has neither been commissioned nor sponsored in any way by any business, government, or other institution. From the responses we received from the CEOs the Confidence Index of 37% is low.
Survey Methodology and Sample
We conducted a survey to gauge CEO confidence in the economy and in their business growth prospects. This was to find out their expectations regarding the overall state of the economy as well as their own industry. A total of 31 CEOs in a wide variety of industries responded and the distribution of respondents was as follows:
Results
Confidence In The Economy
74.19% said the economic conditions has worsened as compared to last year due to the liquidity crunch, lack of disposable incomes, declining employment, policy inconsistencies among other problems. Some had highlighted that it might be the implementation of the Indigenisation policy which has scared away Direct Foreign Investments. Some of the issued highlighted were:
- Unavailability of capital posing a major challenge for business and businesses are operating below capacity
- Liquidity crunch still persists with no clear solution in sight
- Prices are going up while income remains static
- More company closures, liquidity constrains, reduced disposable income, unachievable national budget
- The economy is in a deflation
- Rise in unemployment due to retrenchments
- Spending trends has deteriorated
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