Revenue forecasts raised by US private companies.

Author:Heffes, Ellen M.
Position::PRIVATE COMPANIES
 
FREE EXCERPT

A recent study of C-suite officers of privately held U.S. businesses found that the executives' optimism about the U.S. economy held relatively strong despite ongoing fiscal policy issues, economic and political challenges and uncertainty at home and abroad

More than half (55 percent) of the CEOs surveyed by PvvC's private company services practice (which provides tax, audit and advisory services to private companies, their owners and high net-worth individuals), reported optimism; 9 percent reported pessimism.

Two-thirds (66 percent) of chief executives said they believed the nation's economy was growing, while 4 percent viewed it as declining.

Respondents raised their 12-month revenue forecasts to 9 percent in the third quarter, up 15 percent from The 7.8 percent they projected in the second quarter.

Among private companies overall, those selling exclusively in the U.S. reported a sharply higher revenue growth rate of 10.4 percent, compared with their international peers, who forecast a 7.3 percent increase. Projected revenue growth continues to well-outpace current and forecasted U.S. GDP growth rales, which remain in the low single digits.

With respect to the world economy, uncertainty remained the predominant sentiment voiced by 54 percent of private companies, a 13-point increase from the second quarter; and 35 percent said they were optimistic, down from 39 percent the...

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