Understanding the Conference Board CEO Confidence
The Conference Board CEO Confidence Survey is a quarterly report based on a survey that collects responses from approximately 100 CEOs who represent a variety of industries. The data collected covers the CEO’s attitudes and expectations for the economy and their respective industries. The report is available for a fee to subscribers, but the Conference Board publishes the bottom line index value of the survey.
As per a sample report available on the Conference Board website, the CEOs surveyed represent companies from the manufacturing (IYJ), durable and non-durable goods, and services (VCR) industries. The report also includes CEO expectations for different economies in the world.
Excerpts from the November CEO Confidence report
The Conference Board CEO confidence fell for the second consecutive time in the third quarter of 2017. The reading in this month’s report was 59, lower than the second quarter reading of 61. Any reading above 50 is considered as an overall positive response.
Further discussion of the report
According to Lynn France, the director of economic indicators at the Conference Board, the CEOs rate the business conditions as favorable, and the reduction in this quarter’s reading was because of a decline in short-term expectations. The CEOs remained optimistic about the growth prospects of both mature and the emerging economies. Assessments of the business conditions of Europe, China (YINN), and Japan (EWJ) have remained stable. Sentiment in regards to India (INDL) remained positive, and the outlook for Brazil continued to deteriorate.
The CEO confidence report indicates that the underlying economic conditions in the US economy continue to be supportive despite a minor drop in the index this month.