Industry News

CEO confidence declines

Despite outlook, boost in profits expected

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The Chief Executives' Confidence Measure, which had edged up to 57 in the first quarter of 2006, declined to 50 in the second quarter, The Conference Board reported today in its latest survey of CEOs. The survey includes about 100 business leaders in a wide range of industries. A reading of more than 50 points reflects more positive than negative responses. "CEOs' confidence has waned in the second quarter and expectations signal slower economic growth in the coming months," said Lynn Franco, director of The Conference Board Consumer Research Center. "However, the majority of CEOs do not foresee slower growth having an adverse impact on corporate profits." CEOs' assessment of current conditions decreased significantly, as only 27 percent of CEOs claim current economic conditions are better, down from 49 percent in the first quarter. In assessing their own industries, business leaders were not as negative, but were less buoyant than last quarter. About 40 percent say conditions are ...