CEO Confidence Rebounds After a Historic Fall

NEW YORK, Sept. 4 /PRNewswire/ -- The Chief Executive magazine's CEO Confidence Index rose by over 10 percent in August according to 292 top executives surveyed. The current CEO Confidence Index stands at 92.6, the highest since May 2008 when it was at 95.8. All component indices, which are used to track confidence in more targeted parts of the economy, rose in August as well.

The Investment and Future Confidence Indices, which rose by 12.0 and 11.9 points, respectively, led the gains. On the investment front, 52 percent of respondents said they expect capital spending at their company to stay the same. This is the highest percentage recorded since April 2007, which is an encouraging indication that CEO confidence is slowly improving.

Survey respondent Micah Johnson, CEO of the Entegy Group, noted, "I believe the economy is a little better than the media would have everyone believe. Overall, I believe we will continue to grow and the economy will improve."

Moreover, the Employment Confidence Index rose by just 8.2 points in August, and was the least improved index of all the components. Fewer than 7 percent of respondents said they would characterize employment conditions as "good", while over 42 percent said they would consider them "bad." Similarly, while just 11 percent of CEOs said they expect employment to rise over the next quarter, 46 percent think it will fall.

"This is the lowest level of bearish CEOs we've seen over the past six months," said Edward M. Kopko, CEO and Publisher of Chief Executive magazine. "However, while the index numbers are encouraging, the market remains soft and CEOs remain pessimistic about what the future holds."

Lag analysis of the Employment Confidence Index, which has been remarkably accurate at predicting employment trends for up to 6 months, shows that unemployment is expected to reach or surpass 6 percent in the coming months.

For additional information regarding the confidence of public- and private-company CEOs, details about CEO attitudes on employment, investment and business conditions, visit our full report at http://www.chiefexecutive.net/ceoindex.

About Chief Executive Magazine

Chief Executive is a controlled circulation magazine that has been published since 1977. It reaches 42,000 chief executive officers and their peers, reaches a total readership of 170,000. Chief Executive Group facilitates "Chief Executive of the Year," a prestigious honor bestowed upon an outstanding corporate leader, nominated and selected by a group of his or her peers. Bob Ulrich, A. G. Lafley, George David, Fred Smith, Bill Gates, John Chambers, Michael Dell and Sandy Weill are just some of the leaders who have been honored during the award's 22-year history. Chief Executive also organizes roundtable meetings and conferences to foster opportunities for top corporate officers to discuss key subjects and share their experiences within a community of peers. Visit www.chiefexecutive.net for more information.

    CEO Index, August 2008
    Respondents: 292

    Index                        August, 2008    July, 2008     Monthly Change
    CEO Index                        92.6          82.2              10.4
    Current Confidence Index        104.3          96                 8.3
    Future Confidence Index          84.8          72.9              11.9
    Business Condition Index         84.4          73.8              10.6
    Invest Confidence Index         103.9          91.9              12
    Employment Confidence Index      87.3          79.1               8.2