Survey: CEOs See Improved Economic Growth

Washington, DC, March 13, 2007--Small and mid-sized companies are optimistic about the U.S. economy's prospects in 2007 on the back of brisk first-quarter sales and increased revenue, according to a survey released on Tuesday.

The Vistage CEO Confidence Index--a survey of 1,943 chief executives who are members of the CEO group Vistage International--rose for the second straight quarter, climbing to 95.4 in the first quarter of 2007 from 93.0 in the fourth quarter of 2006.

"CEOs expect an economic expansion to continue for the balance of 2007, despite uncertainties from the housing slump, higher energy prices and record consumer debt," said Richard Curtin, a consultant for the Vistage CEO Confidence Index.

Tight labor markets remain the most significant challenge reported, with more than one-third of all firms providing higher compensation, bonuses, or benefits to attract and retain qualified employees, the quarterly survey showed.

"Unqualified support for a higher minimum wage was voiced by 40 percent of all CEOs, while another 23 percent would support a higher wage only if accompanied by tax breaks for businesses," according to the report.

Twenty-one percent of all executives surveyed report having conducted Internet searches via MySpace, Facebook or Google when researching job candidates, the survey showed.

However, executive participation in the social networking sites remains low, with only 4 percent participating in MySpace and 1 percent in Second Life.