CEO Confidence Improves, The Conference Board Reports

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Jan 11, 2011, 10:00 ET

NEW YORK, Jan. 11, 2011 /PRNewswire/ -- The Conference Board Measure of CEO Confidence™, which had declined in the third quarter, bounced back in the final quarter of 2010. The Measure now reads 62, up from 50 in the previous quarter (a reading of more than 50 points reflects more positive than negative responses).

"The bounce back in CEO confidence signals that the cloud of pessimism that prevailed in the third quarter has lifted and CEOs are once again optimistic," says Lynn Franco, Director of The Conference Board Consumer Research Center. "The improvement in both current and future conditions suggests a strong finish to 2010 and continued growth in the first half of 2011."

CEOs' assessment of current economic conditions was more favorable than in the third quarter. Fifty-six percent say conditions are better compared to six months ago, up from 32 percent last quarter. In assessing their own industries, business leaders were equally upbeat. Now, nearly 55 percent say conditions have improved, compared with 38 percent in the previous quarter.

CEOs' short-term outlook is also much more optimistic. Currently, 56 percent of business leaders anticipate an improvement in economic conditions over the next six months, up from 22 percent last quarter. Expectations for their own industries are also more positive, with nearly 51 percent of CEOs expecting conditions to improve in the months ahead, up from 28 percent last quarter.

Inflation Outlook: Expect Price Increases in 2011

The majority of chief executives expect changes in their firms' selling prices in 2011, with 8 percent anticipating price increases in excess of 10 percent. On average, firms plan to hike prices by 3.3 percent, higher than last year's expectation of 1.6 percent. Some 10 percent plan price decreases and only 2 percent foresee no change.

Survey results were fielded from mid-November to mid-December 2010

Source: CEO Confidence 4th Quarter 2010

The Conference Board

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