The Conference Board Measure of CEO Confidence, which had increased in the fourth quarter of 2009, decreased slightly in the first quarter of 2010. The measure declined to 62, down from 64 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 continue to rate current economic and industry conditions favorably, but expectations are that the pace of growth will not pick up in the months ahead. Hiring plans are improved from last year, but less than a third expect employment levels to increase this year."
CEOs' assessment of current economic conditions is slightly less favorable, with 71 percent stating conditions have improved compared to six months ago, down from 75 percent last quarter. However, in assessing their own industries, business leaders' attitudes improved, with 59 percent claiming conditions are now better, compared with 54 percent last quarter.
Looking ahead six months, CEOs are slightly less optimistic. Approximately 52 percent of business leaders expect economic conditions to improve in the next six months, down from 58 percent last quarter. Expectations for their own industries are also less optimistic, with 42 percent of CEOs anticipating an improvement in the months ahead, down from 45 percent last quarter.
Hiring Plans to Pick Up in 2010
More than 30 percent of CEOs anticipate an increase in employment levels in their industry, up significantly from less than 3 percent a year ago. The proportion of CEOs who anticipate a decrease in hiring plummeted to 22 percent from 86 percent a year ago.
On a separate question, regulation and litigation are major obstacles to hiring new workers. Health care costs were second on the list, closely followed by wage and salary costs. Other fringe benefits are of lesser concern when hiring new workers.
