Vistage CEO Confidence Index Drops for Third Consecutive Quarter Amid Rising Costs
The Vistage Small and Midsize Business (SMB) CEO Confidence Index fell by 3.4 points in Q3 2026 to 80.8, marking the third consecutive quarter of decline as rising healthcare, financing, and operating costs continue to squeeze business margins. While revenue growth expectations remain relatively stable—with 62% of CEOs still anticipating higher revenues—profitability is under pressure due to increasing expenses. Open enrollment season for health care benefits has intensified concerns, with 74% expecting at least a 6% rise in healthcare costs next year. CEOs are adopting defensive financial strategies such as reducing debt and building cash reserves amid high interest rates. Despite economic uncertainty, hiring plans remain steady, with 50% planning to expand their workforce. However, optimism about the broader economy has weakened significantly: only 19% expect improvement over the next year, while 34% anticipate worsening conditions. Economists warn that rising input costs and slowing growth could lead to continued margin compression into 2027. The Vistage CEO Confidence Index is a leading indicator of U.S. Industrial Production nine months in advance, suggesting further economic headwinds ahead.
Topics: business confidence cost of living economic outlook inflation SMBs