CEOs more positive than at end of 2006

American chief executives see better times ahead, according The Conference Board’s most recent survey of CEO confidence, rising to 53 in 2007’s first quarter, a gain of three points over the reading in the final quarter of 2006.
A reading of more than 50 points means that more CEOs responded positively than negatively, according to The Conference Board, a nonprofit business membership and research organization.
“The improvement in CEO confidence this quarter is due primarily to a decline in the number of pessimists, not an increase in the number of optimists,” said Lynn Franco, Director of The Conference Board Consumer Research Center. “The good news, therefore, is that business leaders do not expect conditions to worsen. But by the same token, they do not expect conditions to improve.”
On the other hand, while the business leaders on average were more positive about current and future economic conditions than they were in the last quarter, they were less sanguine than a year ago, when they registered a confidence level of 57 (compared with the current mark of 53). CEO perception of current economic conditions versus six months ago stood at 49, as compared with a mark of 60 in the 2006 first quarter; expectations for six months ahead stood at 53, as compared with 55 a year ago.
In addition, the proportion of CEOs who anticipate a decrease in employment levels in their own industry increased to 32 percent from 24 percent a year ago, while the percentage who expect an increase in employment fell to 42 percent from 46 percent.
For more information on the Chief Executive’s Confidence Measure, visit The Conference Board’s Web site.