January 12 Survey: CEOs upbeat about sales, hiring (Richmond Times-Dispatch)

Executives and owners of small- to medium-size businesses in central Virginia have become more optimistic about their sales outlook for the next six months, but they remain cautious about capital investments, a new survey found.

The survey, conducted by the Virginia Council of CEOs and the University of Richmond's Robins School of Business, found that 68 percent of the business leaders expect to see increases in sales in the next six months, compared with 61 percent surveyed in the third quarter of 2011.

The CEOs also expect to do more hiring in the next six months, with 53 percent saying they plan to increase their staffing, compared with 47 percent in the third quarter survey. Only 2.3 percent said they expect staff cutbacks in the next six months, compared with 11.7 percent surveyed in the third quarter.

"That is good news on the surface, if that trend continues," said Jeff Pollack, an assistant professor of management at the Robins School who adapted the local survey from a national one conducted by the Business Roundtable.

The survey also showed continued wariness among CEOs, with only 20 percent who expect to spend more capital in the next six months, compared with 28 percent in the previous survey. That shows that confidence is still lacking and holding onto cash remains a priority, said Scot McRoberts, executive director of the Virginia Council of CEOs.