Mid-market optimism?

• Author: Heffes, Ellen M.
• Position: ECONOMY - Economic uncertainty - Brief article

Chief executive officers of 52 percent of Russell 2000 companies said they expect no real economic upswing until 2010. However, 62 percent had not yet experienced a slowdown in growth or revenues by Oct. 19, and despite the economic uncertainty, 12-month plans are relatively positive for the responding high-growth companies of a survey, conducted by Ernst & Young LLP's Strategic Growth Markets practice.

Other notable findings:

* 75 percent expect to increase employees and 86 percent expect revenues to increase;

* 61 percent cite the credit crunch and market volatility (54 percent) as having the largest effect on growth (by September and mid-October);

* 43 percent say infrastructure challenges--people, processes and technology--has taken a back seat to the external market drivers.

* 33 percent say recent market turmoil has decreased their access to capital (credit or from private equity);

* 54 percent say they're tightening expenses; and

* 29 percent say the market volatility has delayed a merger or acquisition.

"Right now, these CEOs are an optimistic...