CEO confidence down in second quarter 2013

CEO confidence fell during the third quarter of 2013 to 54 points, down from 62 during the second quarter, according to the Conference Board and PwC Measure of CEO Confidence report.

Any measure above 50 means there are more positive than negative responses.

Lynn Franco, Director of Economic Indicators at The Conference Board, said “CEO confidence declined in the third quarter as increasing uncertainty about the short-term outlook prevailed. Expectations for growth in both India and Brazil deteriorated significantly, while the outlook for the U.S., Japan and China, despite less upbeat, on balance remained positive.”

Below are some highlighted data regarding CEO confidence during the third quarter:

  • Just 33% see better conditions now compared to six months ago, compared to 60% during Q2.
  • Only 32% of business leaders say conditions in their particular industries have improved compared to six months ago, down from 40% during Q2.
  • 42% of CEOs expect economic conditions to get better during the next six months, compared to 60% during Q2.
  • Regarding the next six months in their own industries during the next six months, 34% anticipate improvements, compared to 53% during Q2.
  • In Europe, CEO confidence was better during the third quarter than Q2, unlike Japan, China and the United States.
  • Brazil and India saw more negative CEO responses during Q3 compared to Q2.

CEO confidence down everywhere, except in Europe

All regions, with the exception of Europe (much more positive), had worse expectations for the next six months compared to their responses during the previous quarter.

CEO confidence for the next six months in Brazil and China fell considerably and are “quite negative”.

Despite a fall in CEO confidence regarding the coming six months in China, Japan and the U.S., the overall balance is still positive (above 50).