Global CEO confidence made further gains in the first quarter, according to The Conference Board’s measure of CEO confidence. In the first quarter, the measure increased to a level of 65, up from 63 in the fourth quarter.

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

“CEO confidence improved further in the first quarter of 2018, following a rebound in late 2017,” said Lynn Franco, director of economic indicators at The Conference Board. “CEOs remain positive about short-term growth prospects in the US, and to a lesser degree, about prospects in other mature and emerging markets.”

Hiring is expected to increase in 2018, but at a more muted pace than last year. About 57% of CEOs surveyed anticipate an increase in employment levels in their industry over the course of this year, while about 11% anticipates a decrease.

However, on a separate question, close to 40% of the CEOs surveyed cited finding qualified workers as the largest obstacle to hiring, followed by healthcare costs. Regulation and litigation as a major obstacle to hiring ranks third, followed by wage and salary costs. Other fringe benefits are of much lesser concern when hiring new workers.

CEOs’ assessment of current economic conditions was slightly more positive than in the fourth-quarter report. Seventy-five percent said conditions are better compared to six months ago, up from 71% in the prior survey. CEOs were also moderately more optimistic in their appraisal of current conditions in their own industries. Now, 51% say conditions in their own industries have improved, up from 49% last quarter.

Looking ahead, CEOs’ expectations regarding the short-term outlook improved significantly; 63% of CEOs anticipate an improvement over the next six months, up from 47% in the fourth quarter. However, CEOs were only slightly more upbeat about short-term prospects in their own industries over the next six months, with 43% anticipating improved conditions compared to 41% in the prior survey.