CEO confidence edged up in the first quarter after declining in the final quarter of last year. The Conference Board’s measure of CEO confidence rose to a level of 47, up slightly from 45 in the fourth quarter of 2015.

A reading of more than 50 reflects more positive than negative responses.

The survey found moderate hiring plans in 2016.

“CEO confidence improved in early 2016, but sentiment about the economy remains somewhat guarded,” said Lynn Franco, director of economic indicators at The Conference Board. “The short-term outlook for the US, Europe and India improved from last quarter, but expectations for China and Brazil declined further. Regarding the employment outlook, nearly 30% foresee employment increases in their industry, while 40% foresee declines. Regulation, litigation and health care costs were cited as major obstacles to hiring new workers.”

Globally, CEOs’ assessment of current conditions in India and Europe improved, but readings for the latter still remain negative. Conversely, sentiment regarding conditions in China and Brazil deteriorated further in the first quarter. Sentiment regarding conditions in the US remained neutral, while Japan remains negative.

Expectations for the US, India, and Europe improved, with CEOs moderately upbeat about short-term prospects. The outlook for Japan improved marginally, but overall sentiment remains negative. Expectations for China and Brazil declined further, with CEOs very pessimistic about short-term growth prospects in these markets.