The confidence of CEOs declined in the second half of 2007, thelowest it’s been since the turn of the century, according to the ConferenceBoard’s Measure of CEO Confidence.
The confidence level of chief executives’ dropped 44 percentin the third quarter and 39 percent in the fourth (a reading of more than 50points reflects more positive than negative responses). The last time themeasure fell below 40 was in the final quarter of 2000, when it dropped to 31.
“CEOs’ confidence in the state of the
CEOs’ assessments of current economic conditions wereconsiderably less positive, with just 7 percent of CEOs – down from 14 percentlast quarter – stating economic conditions had improved. In looking at theirown industries, businesses leaders were also less optimistic. About 15 percentclaim conditions are better, down from 17 percent in the third quarter.
Moreover, the outlook for six months out has alsoturned negative. Presently, about 16 percent of business leaders expectconditions in the economy to improve in that time, a drop from 20 percent lastquarter. And only 17 percent are anticipating an improvement in their ownindustries, down from 27 percent last quarter.