CCH Australia - 12 July 2002

While fast-growing US companies are holding to their revenue growth targets for the next 12 months, they are also hedging their bets by reducing their estimates for calendar 2002, sensing the near-term recovery for their industry sector will be slower than expected, according to the PricewaterhouseCoopers "Trendsetter Barometer".

Steve Hamm, managing partner of PricewaterhouseCoopers' middle market advisory services, said that for six consecutive quarters most "Trendsetter" CEOs have been reporting no growth or a decline in the economy, but now the tide appears ready to turn. Now 73% say they are optimistic about the US economy's prospects over the next 12 months, while only 5% are pessimistic. The remaining 22% are still on the fence.

Although Trendsetter CEOs are cautious about the near term, reducing their revenue growth targets for calendar 2002 to 12.9% from the 15.5% estimated in the prior quarter, they expect to do 16% better over the next 12 months than in calendar 2002, which had a growth target of 14.9%. Hamm said the clear expectation is that the first half of 2003 will prove much stronger than the current pace.