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CEO confidence, which increased in the second quarter of 2013, pulled back in the third quarter, according to the measure of CEO confidence released today by The Conference Board and PwC. The measure fell to a reading of 54 in the third quarter from a reading of 62 in the second quarter. A reading of more than 50 points reflects more positive than negative responses.
“CEO confidence declined in the third quarter as increasing uncertainty about the short-term outlook prevailed,” said Lynn Franco, director of economic indicators at The Conference Board. “Expectations for growth in both India and Brazil deteriorated significantly, while the outlook for the U.S., Japan and China, despite being less upbeat, on balance remained positive.”
Only 33 percent of CEOs in the third quarter said conditions have improved compared to six months ago, down from 60 percent who said the same in the second quarter, according to a survey that accompanied the measure. Additionally, 42 percent of CEOs expect economic conditions to improve over the next six months, down from 60 percent who said the same last quarter.
The survey fielded results from mid-August to mid-September.
The Conference Board also today announced the expansion of the CEO confidence survey with PwC US. The Conference Board will extend the quarterly survey — which it has fielded among its member companies since 1976 — to additional Fortune 1000 CEOs and will include a deeper analysis of how prevailing and expected economic conditions impact CEO decision-making in the United States.