Business leaders’ confidence in the economy slumps: report

| December 4, 2019

The race to the finish line of the calendar year is a critical period for reviewing big decisions; budgets, targets, resourcing and investments to set a clear direction come the new year.

To optimise this strategic decision making, it is our responsibility as CEOs and business leaders of mid- market organisations, to analyse and consider the internal and external factors that will impact our business plans for the year ahead.

The Executive Connection CEO Confidence Index December Quarter 2019 shows leaders’ confidence in the economy has declined when looking to the year ahead. We’re starting to see signs of this fall in confidence impacting business decisions; as they replace bullish optimism with conservative confidence.

The Index is a resource for business leaders across Australia and New Zealand, including our 1,200 plus members, to inform decision making in this critical planning period. The Executive Connection Chief Economic Advisor, Warren Hogan, provides robust insights and strategic analysis of CEO sentiment, alongside economic and business trends, to ensure SME and mid-market leaders have a true economic indicator of the current business environment.

This quarter, CEOs across the country have demonstrated that they are feeling the impact of more than a year of stagnant economic growth, and are less optimistic about economic conditions going into 2020. While business indicators have been a elected by the weak economic outlook, all indicators still remain in positive territory, indicating that while optimism has pared back it is still present.

As we’re starting to see economic conditions compound business behaviour, it’s now more important than ever for leaders to look to resources to help tighten business processes and outside counsel to ready their organisation and its people for what may be a trying time.

As leaders, we can learn a lot from our counterparts in various industries. Now is not the time to shy away from peer to peer support but rather tap into all the resources available to us.

With elements a ecting the economy that previously didn’t need to be accounted for, we’re in somewhat uncertain times when it comes to predicting what’s around the corner. SME leaders should be conservative enough in their business plans to remain agile if conditions do drastically change. But should remain operational on all fronts to take advantage of predictions of an economic pick-up should it come into fruition.

Read the full report here.