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CEO Confidence Declines This Quarter

The Conference Board’s Measure of CEO Confidence dropped 16 points

The Conference Board
Fri, 07/06/2012 - 15:26
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(The Conference Board: New York) -- The Conference Board Measure of CEO Confidence, which had improved during the first quarter of this year, decreased during the second quarter. The measure now stands at 47, down from 63 last quarter. A reading of more than 50 points reflects more positive than negative responses.

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“CEOs began the year quite upbeat, but the lackluster performance of the economy so far, and expectations of more of the same, have clearly impacted attitudes,” says Lynn Franco, director of economic indicators at The Conference Board. “On a positive note, CEOs remain confident profits will continue to increase, driven primarily by market/demand growth.”

CEOs’ assessment of current economic conditions has turned considerably negative. Only 17 percent claim conditions have improved compared to six months ago, down significantly from 67 percent last quarter. A more negative attitude was also expressed regarding their appraisal of their own industries. Now, just 22 percent of business leaders say conditions have improved, compared with 42 percent in the first quarter of this year.

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