The Conference Board’s Measure of Business Confidence jumped from a level of 53 in the first quarter of this year to 60 during the second quarter. A reading of more than 50 indicates more positive than negative responses.
“Growing optimism about profits suggests stronger corporate performance ahead,” said Lynn Franco, director of The Conference Board’s Consumer Research Center. As for current business conditions, CEOs’ assessment jumped from a 40 in the first quarter to a 55 in the second.
Among other findings in the New York-based Conference Board’s survey, CEOs more upbeat about the next six months. Their measure of confidence of business conditions through the end of this year rose from 60 in the first quarter to 66 in the second. Also, 65% of those surveyed expect profits to rise. Among those expecting profit gains, 37% cite cost reductions as the key reason, 28% believe increases in market demand will help the most, and 8% credit price increases.