Welcome to the Business Journal Archives
Search for articles below, or continue to the all new BusinessJournalDaily.com now.
Search
CEO Confidence in Economy Declines, Survey Finds
NEW YORK -- The Conference Board and PwC Measure of CEO Confidence, which rose in the first quarter, declined slightly in the second quarter. The measure stands at 62, down from 63 last quarter.
A figure of 51 and above reflects more positive than negative responses.
"CEOs are slightly less confident than in the first quarter, as both their assessment of current and expected conditions edged down," said Lynn Franco, director of economic indicators at The Conference Board, in a prepared statement. "However, four out of every five expect profits will increase over the coming year, with market/demand growth the primary driving force."
CEOs' assessment of economic conditions was considerably less favorable. Today, 46% responded compared to 54% three months ago, conditions are better than they were six months ago. However, business leaders' sentiment regarding the health of their own industries edged up slightly, 48% saying conditions have improved, compared with 47% last quarter.
CEOs' short-term outlooks were a tad less optimistic in the second quarter. Some 53% of those surveyed, down from 60% anticipate the economy will improve over the next six months. Expectations for their own industries are less hopeful, 46% anticipating improvement, down from 52% in the first quarter.
Globally, CEOs are more positive in their assessment of economic conditions in Europe and Japan, but slightly less so than last quarter regarding conditions in the United States. Sentiment regarding conditions in India increased the most, but overall remains neutral, a reading of 50. More than half were pessimistic about conditions in China and Brazil, despite a slight uptick.
CEOs’ short-term expectations for the United States and Europe edged down slightly. Expectations for China and Japan improved while sentiment regarding India surged with more than half more optimistic than pessimistic.
Regarding profit expectations over the next 12 months, 80% of CEOs expect increases. Executives in the durable and nondurable goods industries are the most optimistic, with nine of 10 expecting profits to rise. Some 76% of CEOs in the service industries expect profits to rise.
Published by The Business Journal, Youngstown, Ohio.
CLICK HERE to subscribe to our twice-monthly print edition and to our free daily email headlines.