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"CEO's Confidence Dips, But Remains Strong"
"NEW YORK -- CEO confidence in the nation's economy dipped in the second quarter compared to the first three months of 2004, The Conference Board reported today. "Despite the dip in overall confidence, CEOs are very upbeat about the outlook for the next six months," said Lynn Franco, director of The Conference Board's Consumer Research Center. "Profit expectations are much improved from a year ago and the majority of business leaders cite an increase in market demand as the main impetus."CEOs' overall assessment of current conditions remained positive in the second quarter of 2004. More than 90% of CEOs claim current economic conditions have improved, the same as last quarter. More than 70% say conditions are better now compared to six months ago.In looking ahead to the next six months, CEOs' expectations were more subdued than last quarter, but still positive. Their expectations for their own industries also posted a decline.About 88% of chief executives expect profits to rise, up from a year-ago reading of 65%. But there are differences among industries. About 84% of executives in the services industry expect profit increases. But among manufacturers, those in the durable goods industry (100% expect profits to rise) were more optimistic than those in the non-durable sector (85% see profits rising). Among executives who expect profits to advance, 60% cite increases in market demand to be the key reason. About 25% cite cost reductions. Some 7% of CEOs believe technology will be the main source of profit growth, and the remaining 8% believe price increases will boost profits.Visit The Conference Board: www.conference-board.org"