Conference Board: CEO confidence up in 4Q
Some economic growth predicted in the 1st half of '07
By Furniture Today Staff -- Furniture Today, January 10, 2007
NEW YORK -- The Chief Executives' Confidence Measure, which had fallen to 44 in the third quarter of 2006, improved to 50 in the final quarter of 2006, according to The Conference Board's latest survey of CEOs.
A reading of more than 50 points reflects more positive than negative responses. The survey includes about 100 business leaders in a wide range of industries.
Lynn Franco, director of the Board's Consumer Research Center, said: "The bounce-back in CEO confidence suggests further economic growth in the first half of 2007. However, there is little to suggest a significant strengthening or deterioration in the pace of growth. On the inflation front, CEOs anticipate price increases of about 3.3% for the year, slightly down from last year's estimate of 3.4%."
CEOs' confidence in current-day conditions was mixed and, on average, rather anemic. Now, just 24% of CEOs claim the current economic environment is better, up from about 16% in the third quarter. However, in assessing their own industries, business leaders were less positive than last quarter. Approximately 23% claimed conditions are better, down from 28% last quarter.
CEOs' optimism about the short-term outlook improved from the third quarter. Now, nearly 29% of business leaders expect economic conditions to improve in the next six months, up from 16% last quarter. Expectations for their own industries were also more positive, with about 34% anticipating an improvement, up from 20% last quarter.
Inflation Outlook: Moderate Price Increases Expected
The majority of chief executives expect changes in their firms' selling prices in 2007, with just 10% anticipating price increases in excess of 10%. On average, firms plan to hike prices by 3.3%, slightly lower than last year's expectation of 3.4%. Some 7% plan decreases and 14% foresee no change.
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