CEO Confidence Increases, The Conference Board Reports

Measure Rises 14 Points in First Quarter 2012

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Apr 05, 2012, 10:00 ET

NEW YORK, April 5, 2012 /PRNewswire/ -- The Conference Board Measure of CEO Confidence™, which had improved in the fourth quarter, increased further in the first quarter of 2012. The Measure now reads 63, up from 49 last quarter (a reading of more than 50 points reflects more positive than negative responses).

Says Lynn Franco, Director of The Conference Board Consumer Research Center: "CEOs' confidence has rebounded from rather dismal readings in the latter half of 2011. Looking ahead, chief executives are optimistic about growth prospects, with about the same percentage as last year expecting to hire new workers."

CEOs' appraisal of current economic conditions has grown very positive. Now, 67 percent say conditions have improved compared to six months ago, up from just 17 percent last quarter. A similar improvement is reflected in the assessment of their own industries. Forty-two percent of business leaders claim conditions have improved, compared with only 16 percent in the fourth quarter of 2011.

CEOs' optimism about the short-term outlook also improved significantly. Currently, about 59 percent of business leaders foresee an improvement in economic conditions over the next six months, up from 32 percent in the fourth quarter. Expectations for their own industries are also more upbeat, with 44 percent of CEOs expecting conditions to improve in the months ahead, up from approximately 25 percent last quarter.

Hiring Plans to Pick Up in 2012
Half of all CEOs anticipate an increase in employment levels in their industry, about the same as a year ago. The proportion of CEOs who anticipate a decrease in hiring declined slightly to 15 percent from 16 percent a year ago.

On a separate question, chief executives say that regulation and litigation are major obstacles to hiring new workers, followed by health care costs. Wage and salary costs, as well as other fringe benefits, are of lesser concern when hiring new workers.


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	2009				2010				2011				2012
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
MEASURE OF CEO CONFIDENCE	30	55	63	64	62	62	50	62	67	55	42	49	63
1. Current Economic Conditions vs. 6 Months Ago	5	47	65	69	67	67	50	62	72	51	32	45	66
2. Expectations for Economy, 6 Months Ahead	40	61	63	64	62	59	49	62	68	57	45	51	63
3. Expectations for Own Industry, 6 Months Ahead	44	57	61	60	58	58	51	61	62	57	48	50	60
Current Conditions in Own Industry vs. 6 Months Ago	14	43	59	62	63	63	52	60	65	55	38	41	57
Copyright © 2012 by The Conference Board, Inc. All rights reserved.

Survey results were fielded from mid-February to mid-March
Source: CEO Confidence 1st Quarter 2012
The Conference Board

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