Confidence among construction CEOs recovered in the third quarter to nearly its pre-Covid level, according to the Vistage CEO Confidence Index. The September Index was 82.3, up from 65.5 in the second quarter. The Index was 85.0 in the third quarter of 2019.
The largest year-to-year change occurred in how firms viewed prospects for the economy, which doubled from last year, and reached the highest level since President Trump won the 2016 election.
Although 83 percent of all CEOs surveyed believe the economy is still in a slump, sharp increases have been recorded in the proportion of CEOs that believe growth prospects will improve in the year ahead.
Two sources of uncertainty are the upcoming election and delays in obtaining possible Covid-19 vaccination, which could drastically effect economic prospects in the months to come. Revenue continues to improve, both in terms of how CEOs perceive its current performance, and how they project it will perform going forward.
Half (51 percent) of construction CEOs anticipate their revenue will increase in the next 12 months, and 47 percent expect profitability to improve. Both are slightly lower than the national averages, 62 percent and 53 percent, respectively.
More than a third (37 percent) of construction businesses reported that their full workforce has returned to work. More than half (53 percent) plan to expand their workforce in the next year, and 42 percent plan to hire new talent in the next three months.
The Index is a survey of more than 1,300 small and medium-sized business CEOs and owners.