CEO Confidence jumps: growing concern over confidence in the future.Montvale Montvale may mean:
prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. 596 CEOs surveyed by Chief Executive Magazine. Current Confidence led the pack of increases this month and jumped by 11.2 points to 193.6. Conversely con·verse 1 intr.v. con·versed, con·vers·ing, con·vers·es 1. To engage in a spoken exchange of thoughts, ideas, or feelings; talk. See Synonyms at speak. 2. , Future Confidence jumped by 3.5 points to 154.2. Throughout the past year, Chief Executive has been reporting on the growing gap between Current in Future Confidence. In November, 2002, Future Confidence actually led Current Confidence by 27.3 points. Since then, the trend has reversed and this month Future Confidence actually trails Current Confidence by 39.3 points, marking a change over time of 66.6 points (for more on this, see page 7) The Business Conditions Index also rose strongly by 8.4 points, suggesting a strong business environment in the coming months. The percentage of CEOs who perceived business conditions as "good" jumped almost 9 percentage points to 50.2 percent this month. In addition, almost 80% of CEOs (79.6) said they expect a gradual growth of the economy over the next quarter, and over 50% (51.6) said they expect to increase capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. (for more detailed results, see page 8 or visit www.ceoindex.com). Though it jumped by 5.2 points this month, the Employment Conditions was the worst performing index this month. The percentage of CEOs expecting to increase hiring has been dropping since the start of 2005. Back in December, almost 60% (59.7) of CEOs expected to increase hiring within their organizations. This month, only 52.5% of CEOs expected to do so. Yet, the reason for losses in hiring might not be due to a lack of open positions. Said one CEO this month, speaking for many, "we can't find any applicants let alone employees for our jobs." Overall [up arrow] +6.6 CEO Confidence [up arrow] 170.1 CEO [up arrow] +11.2 Current Confidence [up arrow] 193.6 CEO [up arrow] +3.5 Future Confidence [up arrow] 154.2 Business [up arrow] +8.4 Conditions Index [up arrow] 192.9 Investment [up arrow] +6.2 Confidence Index [up arrow] 144.3 Employment [up arrow] +5.2 Confidence Index [up arrow] 178.1 |
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