CEO Confidence Hits Fourth Consecutive Quarterly Increase

CEO Confidence Hits Fourth Consecutive Quarterly Increase


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CEO Confidence Hits Fourth Consecutive Quarterly Increase

Jan. 14, 2010 — CEO confidence increased slightly to 64 in Q4 2009 up from 63 in Q3 and 24 one year ago, according to The Conference Board; the measure is the fourth consecutive quarterly increase.

“The continued improvement in CEO confidence suggests further economic growth in 2010,” said Lynn Franco, director of The Conference Board Consumer Research Center. “However, short-term expectations do not suggest a significant strengthening in the pace of growth.”

CEOs’ assessment of current economic conditions continued to pick up, with 75% saying conditions had improved compared to six months ago, up from 68% last quarter, according to The Conference Board. In assessing their own industries, business leaders’ attitudes remained essentially unchanged, with 54% claiming conditions are better, compared with 55% last quarter.

Looking ahead six months, CEOs remain optimistic, according to the survey, which was conducted from mid-November to mid-December 2009. Approximately 58% expect economic conditions to improve in the next six months, about the same as last quarter. Expectations for their own industries were less optimistic, with 45% anticipating an improvement in the months ahead, down from 51% last quarter.

Inflation Outlook: Expect Moderate Price Increases in 2010 According to survey results, the majority of CEOs expect changes in their firms’ selling prices in 2010. On average, firms plan to hike prices by 1.6%, higher than last year’s expectation of 1%. Only 5% anticipate price increases in excess of 10%. About 15% plan to decrease prices, and 29% foresee no change.

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http://dreamlearndobecome.blogspot.com This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.