Tags: CEO | Confidence | Drops

CEO Confidence Drops for First Time in 12 Months

By Dan Weil   |   Tuesday, 10 Aug 2010 02:52 PM

The economic confidence of U.S. chief executive officers fell this quarter for the first time in a year, according to a survey conducted by the Young Presidents’ Organization.

Its CEO sentiment index slid to 57.5 in July from 61 in April, Bloomberg reports. A number above 50 indicates more CEOs have a positive view than a negative one.

Only 42 percent of CEOs expect business to be better in six months than it is today, and 20 percent think it will be worse. That’s a far cry from three months earlier, when 64 percent of CEOS saw better times ahead, and only 8 percent were pessimistic.

A mere 30 percent of CEOs expect to expand their staff by at least 10 percent in the next year, down from 36 percent in April.

And 62 percent anticipate keeping their payrolls steady, up from 58 percent in April.

“Employment growth in the United States is likely to remain in neutral for the foreseeable future,” David Maney, survey spokesman and chairman of Denver investment bank Headwaters MB, said in a statement.

CEO confidence was highest in the manufacturing sector and lowest in construction.

Small-business owners also have lost confidence.

The National Federation of Independent Business’ optimism index fell to 88.1 in July from 89 in June.

"We don't have any confidence that the economy is going to get fixed, that it's going to improve," William Dunkleberg, the group's chief economist, told CNBC.

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The economic confidence of U.S. chief executive officers fell this quarter for the first time in a year, according to a survey conducted by the Young Presidents Organization. Its CEO sentiment index slid to 57.5 in July from 61 in April, Bloomberg reports. A number above...
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