The latest survey of the executives active in the Young Presidents’ Organization (YPO) is somewhat more encouraging than the one conducted last year, but there are still far more who have a negative outlook than those with a positive one.
Last year, 33% thought that business conditions were improving – that improved to 39%. While it is progress, it still means that some 60% are still skeptical. The main motivation for the improved attitude was the last minute fix that kept the nation from flying off the fiscal cliff. However, the present problem is that many see the next crisis as imminent. The overall impression is that there will be nothing on the horizon but wave after wave of government-inspired crises.
The most often-cited issues were the expiration/consumer impact of the payroll tax holiday and the consequences of sequestration. These would be the respondents that would be most accurately described as worried about the short term. They contrast with those who have more long-term concerns. These are the respondents who put the loose monetary policies pursued by the Federal Reserve and the heavy borrowing activities of the government at the top of their list of issues.
The reactions of those in the YPO reflect the industry sector in which they are involved. Those closest to retail and the consumer are the least supportive of the tax. Those in the banking and financial sectors are most concerned about long-term issues like inflation. Once again there is the issue of whose ox is being gored.
-Armada Corporate Intelligence