Trendsetter Barometer business outlook - Optimism and revenue forecasts dip for private companies, but not precipitously

05/15/2012 by Private company services

PwC's Private Company Trendsetter Barometer tracks the business issues and best practices of privately held US growth businesses. It incorporates the views of 243 chief executive officers (CEOs/CFOs): 134 from companies in the product sector and 109 in the service sector, averaging $333 million in enterprise revenue/sales, and including large, $500M-plus private companies.

Survey highlights

  • More private companies are optimistic about the US economy (50%) than uncertain (38%), though confidence is not as high as at the beginning of the year.
  • Trendsetter companies selling abroad are as optimistic about the world economy as they are pessimistic -- 23% in both cases. The overriding sentiment among these international companies, however, remains one of uncertainty (54%).
  • Most Trendsetter companies (86%) expect positive revenue growth over the next year, though they plan a slight scaling back in spending.
  • International private businesses continue to lead in planned operational spending, particularly Trendsetter companies that sell in emerging markets. Technology spending leads the way.
  • Hiring plans hold steady, with 54% of Trendsetter companies looking to add new employees.
  • Potential lack of demand is still the top perceived growth barrier, cited by 68% of companies. Nearly half (48%) are also concerned about legislative/regulatory pressures.

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