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 better, down from 52 percent last quarter.

CEOs are more pessimistic about the short-term outlook than they were in the first quarter of 2006, with only 21 percent of business leaders expecting economic conditions to improve in the coming months, down from 35 percent last quarter. Expectations for their own industries were also less optimistic, with about 31 percent anticipating an improvement, down from 35 percent last quarter.

On the issue of profit expectations over the next 12 months, 75 percent of executives anticipate increases. However, there are some marginal differences by category of business. Those engaged in the non-durable goods industry are the most optimistic, with 80 percent expecting profits to increase. Executives in the durable goods industry are a very close second, with 79 percent anticipating a rise in profits. However, only 66 percent of CEOs in the service industry expect profits to increase.

Among chief executive officers who expect profits to increase, 52 percent cite an increase in market/demand growth as the main source of improvement, 26 percent cite cost reductions, 16 percent cite price increases, and the remaining 6 percent believe technology will drive profits up.

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription