Career Corner: A Monthly Executive Search Firm News Article Series.
The CEO Confidence Index
February 1st, 2008
The CEO Confidence Index made strides in the final month of 2007, marking a shift in the steady declining over the last year.
The CEO Confidence Index is a leading economic indictor of executive sentiment and is tracked by The Chief Executive magazine. In December, the index rose 8 percent for 122.1 points, reversing a downward spiral that say confidence fall 26 percent in 2007.
“The shift in the direction of the CEO Index is an encouraging sign for the economy,” said Ed Kopko, CEO and publisher of Chief Executive magazine. “However, it is too soon to interpret this as a sign of sustained reversal on economic trends. All in all, CEOs believe that lower interest rates are helping to constrain the effects of the subprime meltdown, but they fear that they may also be contributing to a deeper and more sustained correction of the markets.”
However, an encouraging sign also came with the Business Conditions Index recording its largest gains in December, with a 9 percent rise. The Business Conditions Index tracks faith in current and near-term business conditions.
Fifty-three percent of CEO included in the BCI reported that business conditions were “normal,” while those rating the conditions as “bad” declined to 23 percent from 28 percent in November. The percentage of CEOs that rated the conditions “good” remained steady at 22 percent.
Also noted in the report were changes in the Employment Confidence Index:
Among other indices, the Future Confidence Index made the second biggest gain, increasing more than 8 percent to 98.9 points. Third was the Investment Confidence Index, which increased 8 percent to 108.5 points, and finally, the Current Confidence Index increased by 4 percent to 156.6 points.