Mirroring the optimism the Corporate Executive Board found in a survey of business executives earlier this year, a new study by Ernst & Young LLP has found that most senior executives now have a positive attitude and expect economic recovery and increased profitability over the next 12 months.
According to the Ernst & Young Growth Company Leadership survey, which polled 349 senior level executives at US public and private firms in April 2010, business leaders are particularly optimistic about revenue, profitability, technology spending and hiring. For example:
75 percent of senior executives questioned indicate they are optimistic about achieving their companies' growth expectations over the next two years.
Among respondents, almost two-thirds (64 percent) expect their revenues to increase over the next 12 months by an average of 11.3 percent. Fifty-eight percent anticipate profit increases this year.
73 percent are optimistic that the current economic recovery will continue to expand this year.
More than half (55 percent) of all respondents say domestic operations solely will drive revenue growth, with another 39 percent indicating a combination of domestic and international operations.
Forty percent of executives surveyed anticipate an increase in hiring new employees over the next 12 months. Only 22 percent anticipate a decrease in hiring.
The industries that are most likely to expect growth in both revenue and profits, according to the survey, are technology (74 percent revenue and 72 percent profitability), financial services and retail/wholesale (both 69 percent revenue and 63 percent profitability). Financial services companies report the highest average revenue growth rate (13 percent).
More details from the survey are available here.