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Majority of employers experiencing negative impact due to inflation, according To latest Virginia CEO survey

CEOs expect sales and employment to increase some, but capital spending to remain flat over the next six months.

Trevor Dickerson



Eighty-four percent of CEOs are experiencing a negative impact on their business due to inflation. In addition to the current impact of inflation, 55% expect inflation to continue to rise above current levels over the next six months. That’s the latest from the quarterly CEO Economic Outlook Survey conducted by the University of Richmond’s Robins School of Business and the Virginia Council of CEOs.

“The survey results suggest that CEOs have felt a considerable negative impact from inflationary pressures and, as a result, are less optimistic overall about the next six months,” said Rich Boulger, associate dean at the Robins School, who administers the survey and collects the responses.

“It is no surprise that inflation is hurting small businesses,” said Scot McRoberts, executive director of VACEOs. “The entrepreneurs I work with continue to adapt to challenging conditions, but I have seen their optimism dim in recent months.”

Fifty-nine percent of CEOs expect sales to increase, with 28% expecting at least a 10% increase, while 52% expect employment to increase over the next six months.

The survey found expectations over the next six months for sales and employment were both positive, although expectations were down compared with the end of Q1 2022.

More than half (59%) of CEOs indicated that they expect sales to increase over the next six months.

  • 6% expected sales to be “significantly higher.”
  • 53% expected sales to be “higher.”
  • 13% expected sales to be “lower.”
  • 28% indicated they expected no change.

Thirty-one percent of CEOs expect capital spending to increase over the next six months (similar to last quarter), while 25% expect capital spending to decrease. More than 43% expect capital spending to remain flat.

Fifty-two percent of respondent CEOs expect employment to increase over the next six months. Additionally, 38% expect employment to remain flat while only 11% expect employment to fall.

Taken as a whole, the results pertaining to sales, capital spending, and employment are less positive than in the first quarter of 2022 with the overall Economic Outlook Index decreasing (81.3 versus 98.1) relative to the results from the end of Q1 2022.

Additionally, CEOs were again asked if the war in Ukraine and other world events have resulted in supply chain interruptions, which negatively impacted their business. They reported the following impact on their business:

  • No impact: 33%
  • A minor negative impact: 43%
  • A significant negative impact: 24%

For additional information about the CEO Economic Outlook Survey and a specific breakdown of the data, click here.

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Trevor Dickerson is the Editor and Co-Founder of RVAHub.