US CEOs are the most bullish in the world

Even after a harsh winter, corporate bosses plan to create more jobs and spend more money on equipment and resources, a new survey says.

By MSN Money Partner May 1, 2014 2:31PM
Smiling businessman looking out office window © Daly and Newton, OJO Images, Getty ImagesBy Alan Zafran, CNBC

If the perception of U.S. CEO confidence were to be ranked in classic album terms, Led Zeppelin's "The Song Remains the Same" would have topped the charts at No. 1 for a 15-month run. 

But the latest YPO survey of CEOs indicates that business leaders in the United States are now humming out loud to the likes of Nina Simone's "Feeling Good."

After stagnating within a tight 3-point range since mid-2012, the YPO Global Pulse Confidence Index shows a high level of optimism among U.S, executives, even amid potentially worrisome economic data published during the harsh winter months.

Confidence rose again in the April survey, to 63.7, making the United States the most optimistic region in the world for the first time since YPO began tracking CEO sentiment.

Emerging data seems to back up what CEOs are telling us. With initial unemployment claims at a seven-year low and gains in non-farm employment flirting with 200,000 per month, the economy is finally creating jobs at the same pace it was prior to the 2008 recession. Among the 970 U.S. CEOs surveyed in April, 41 percent said they intended to hire more workers over the next 12 months, about the same percentage that said so in January.

Encouragingly, manufacturing capacity utilization rates are at a level that demands heightened levels of capital spending from CEOs. Sure enough, almost half -- 46 percent -- of the CEOs surveyed said they intended to step up fixed investments in the coming quarters.

Moreover, conditions are ripe for consumer spending, which generates 70 percent of U.S. GDP. The 180 percent increase in the  Standard & Poor's 500 Index ($INX) from its March 2009 nadir and the burgeoning housing market should be enticing consumers to spend via the "wealth effect." These same consumers have materially reduced their debt loads since 2007 and are at a point whereby they might actually be willing to open their wallets.

How the Fed, VCs factor in CEO outlook

All of this data comes with psychological support from the Fed. After all, Federal Reserve Chairman Janet Yellen has made it crystal clear that monetary conditions will continue to focus on accommodation until we see the inflation rate approach 2.0 percent -- currently at 1.1 percent -- and an unemployment rate of about 5.5 percent, currently 6.7 percent.

Matching CEO confidence, venture capitalists dramatically increased their investments in the first quarter of 2014. Yes, those same "crazy" VCs who are paying questionably high multiples for a seat at the table of some of America's fastest-growing companies.

In fact, according to the latest MoneyTree report, VCs invested $9.5 billion into 951 U.S.-based companies last quarter, 12 percent higher than the previous quarter and the highest dollar amount invested in early-stage companies since the second quarter of 2011.

It seems as though we are finally seeing the groundswell of confidence from the business community needed to kickstart our economy. Now there's a song worth playing.

Survey Methodology
The quarterly electronic survey, conducted in the first two weeks of April, gathered answers from 1,996 chief executive officers across the globe,including 970 in the United States. Visit for more information about the survey methodology and results from around the world.

CNBC and YPO (Young Presidents' Organization) have an exclusive editorial partnership. It consists of regional Chief Executive Networks in the Americas, EMEA and Asia-Pacific. The opinions of Chief Executive Network members are solely their own and do not reflect the opinions of YPO as a whole or CNBC.

More from CNBC

May 1, 2014 4:53PM
"US CEOs are the most bullish in the world"

Seeing how they are continually stealing the Wages off of Labor here and abroad, why should that come as a shock to anyone. After Decades of leeching off the Working Poor and Fading Middle-Class, now they are just getting a Freaking Clue about Cap X spending.

Corporations have been overly enriched at the expense of the Consumer and the Workers. Crack-Dollars were leveraged towards massive Stock Buybacks and dividends increases. Now as we approach the end of another Cycle, the Fat Cats are seeing that We the People are getting Fed up with being Played. Again.

Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
100 character limit
Are you sure you want to delete this comment?


Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.


StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

125 rated 1
264 rated 2
485 rated 3
679 rated 4
640 rated 5
617 rated 6
632 rated 7
493 rated 8
276 rated 9
153 rated 10

Top Picks

TAT&T Inc9



Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.