PwC US Survey Finds Uptick in Economic Optimism and Hiring Plans Among US Private-Company Executives

Private Companies’ Revenue Forecasts Continue to Outpace US GDP Growth Forecast

PwC's Trendsetter Barometer tracks the business issues and best practices of privately held US growth businesses. It incorporates the views of 225 C-suite executives (CEOs/CFOs): 129 from companies in the product sector and 96 in the service sector, averaging $315 million in enterprise revenue/sales, and including large, $500 million-plus private companies.

New York, April 23, 2013 — In the first quarter of 2013, private-company executives’ optimism about the 12-month prospects for the US economy rose eight points, according to PwC US’s Private Company Trendsetter Barometer. Fifty percent of executives expressed optimism, while only 11 percent were pessimistic, down from 18 percent the prior quarter. Optimism about the world economy also climbed, up 12 points to 37 percent, reaching its highest level since the second quarter of 2011 as the gap between pessimists and optimists widened.

The following graphic shows the trajectory of private-company optimism over time. Optimism about the US and world economies trended closely together in recent years but diverged in 2012, when concerns about the world economy weighed more heavily. The gap has begun to close again.


Optimism Barometer

US private companies' economic optimism today and over time

The following chart shows a further breakout of private companies’ economic sentiments and growth projections for the next 12 months, alongside data from the prior quarter and from this time last year.

US Private Company Economic Sentiment: US Economy, 12-Month Outlook


1Q 13
4Q 12
1Q 12
  • Optimistic
  • Pessimistic
  • Uncertain

US International Private-Company Economic Sentiment:
World Economy, 12-Month Outlook


1Q 13
4Q 12
1Q 12
  • Optimistic
  • Pessimistic
  • Uncertain

Another positive indicator is that for the second consecutive quarter, private companies reported an increase in planned total composite workforce hiring — 3.4 percent, up from 2.8 percent in the prior quarter and well above a year ago when it was 1.8 percent. This quarter’s planned composite workforce increase is the highest since the third quarter of 2008.

Overall, fifty-two percent of private companies plan to hire in the next 12 months. Of those companies, 33 percent are looking primarily for trained professionals in areas such as technology/engineering, business/finance, and sales/marketing, and nearly as many (28%) say that a lack of qualified workers is a potential barrier to growth.

“Private companies are fueling the job creation that is needed to create a positive force in the economy," says Ken Esch, a partner with PwC’s Private Company Services practice. "It’s encouraging to see their commitment to increasing headcount as they scale their businesses for further growth. Significant time out of the workforce has eroded skillsets for some workers, so it’s understandable that private companies see a lack of qualified talent as a significant headwind. An increasing number of them are addressing this issue by retraining new employees to bring them up to speed.”

Revenue Forecasts Dip But Still Outpace Projected GDP Growth Rate

Private companies' forecasted revenue growth rate dipped to 6 percent (down from 7 percent the prior quarter) while nonetheless remaining at least twice as high as projections for US GDP growth for 2013. Three in four private companies (75 percent) expect positive revenue growth over the next 12 months (down five points from the prior quarter), and one in four (25 percent) forecast double-digit growth.

International companies’ lower 12-month revenue forecasts were the main contributor to the dip in private-company projected growth rates. They forecasted a 6.9 percent 12-month revenue growth this past quarter compared with 9.3 percent in the prior quarter. Domestic companies’ revenue forecasts remained fairly steady at 5.3 percent, up from 5.1 percent the previous quarter.

 “As companies continue to grow, post-recession, it can be difficult to maintain the same high growth rates because they are no longer benefitting from low comparables,” says Esch. “While we’re seeing a slight flattening of private-company growth projections, they continue to outpace the US GDP growth forecasts, and from a profitability standpoint, we’re still seeing healthy margins.”

# # #

About the Private Company Services Practice
Moving beyond tomorrow’s uncertainty and growing your business matters to you, and to us. Experience what it is like to work with professionals dedicated to serving private companies and their owners. Working with you on both day-to-day and more-complex issues such as compliance, controls, cash flow, expansion, succession, and personal financial matters -- this is PwC’s Private Company Services.

You talk, we listen and share insight. We are proud to serve as advisors to more than 60% of America’s Largest Private Companies(1), collaborating to help you achieve long-term success.

Experience the difference. Visit us online at or email us at to start the conversation.

(1) 2012 Forbes America's Largest Private Companies List

About PwC US

PwC US helps organizations and individuals create the value they're looking for. We're a member of the PwC network of firms in 158 countries with more than 180,000 people. We're committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at

Learn more about PwC by following us online: @PwC_LLP, YouTube, LinkedIn, Facebook and Google +.

© 2013 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved. PwC refers to the US member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see for further details.

For additional information contact:
Laurie Kelly
PwC’s Private Company Services
(617) 530-4531

Colleen Krieger
Edelman for PwC’s Private Company Services
(212) 277-3725