Houston CEO's more optimistic

Houston Business Journal

Houston-area CEOs are optimistic about the state of the economy, according to a survey by Vistage International Inc.

The San Diego-based chief executive organization’s Vistage CEO Confidence Index for the first quarter showed 64 percent of Houston CEOs thought overall economic conditions in the U.S. were improved over last year, and 62 percent expected conditions to get better.

Overall, the index was 105.2 in the first quarter of 2011, down slightly from the 106.3 recorded in the prior quarter, but above the 93.7 in the 2010 first quarter survey. CEO confidence has more than doubled since the recession low of 48.7 two years ago, Vistage said.

However, when asked what their most significant business issue was, 31 percent of respondents said economic uncertainty. That differed from the country as a whole, where nearly 75 percent of CEOs said rising gas prices will have an adverse impact on their businesses.

Over 60 percent of Houston CEOs expected to increase employees over the next 12 months, with 29 percent saying they would be adding jobs steadily during that period. However, 57 percent of CEOs said they were finding it difficult to get qualified talent.

Houston CEOs also said their biggest company challenge was customer retention and generating leads followed by cash, liquidity and receivables.

CEOs overall though Congress’ top priority should be lowering the deficit.

The index also showed half of Houston CEOs surveyed thought the best way for the government to help create jobs was to expand access to capital. In another question, 43 percent found it harder to obtain credit for their businesses than six months ago.

The nationwide survey was conducted from March 15 to 25. The index is directed by Richard Curtin, research professor at the University of Michigan and the director of the Consumer Sentiment Surveys at the Institute of Social Research.