CEO Confidence Surveys 1Q 2018 – Notable Excerpts

On April 5, 2018, The Conference Board released the 1st Quarter Measure Of CEO Confidence.   The overall measure of CEO Confidence was at 65, up from 63 in the fourth quarter. [note:  a reading of more than 50 points reflects more positive than negative responses]

Notable excerpts from this April 5 Press Release include:

CEOs’ assessment of current economic conditions was slightly more positive, with 75 percent saying conditions are better compared to six months ago, up from 71 percent in the fourth quarter of last year. CEOs were also moderately more optimistic in their appraisal of current conditions in their own industries. Now, 51 percent say conditions in their own industries have improved, up from 49 percent last quarter.

Looking ahead, CEOs’ expectations regarding the short-term outlook was significantly better. Now, 63 percent expect economic conditions to improve over the next six months, compared to just 47 percent last quarter. CEOs, however, were only slightly more upbeat about short-term prospects in their own industries over the next six months, with 43 percent anticipating conditions will improve, versus 41 percent last quarter.

The Business Roundtable last month also released its CEO Economic Outlook Survey for the 1st Quarter of 2018.   Notable excerpts from the March 13, 2018 release, titled “Business Roundtable CEO Economic Outlook Index Reaches Highest Level in Survey’s 15-Year History“:

The Business Roundtable Q1 2018 CEO Economic Outlook Index – a composite of CEO projections for sales and plans for capital spending and hiring over the next six months – increased to 118.6 in the first quarter of 2018, the highest level since the survey began in the fourth quarter of 2002. The survey was conducted between February 7 and February 26, 2018. Results reflect renewed CEO optimism and confidence following passage of the Tax Cuts and Jobs Act, but do not capture effects of President Trump’s March 8, 2018, announcement of steel and aluminum tariffs.

The Q1 2018 Index exceeded its previous high point of 113 in 2011. The Index has significantly surpassed its historical average level of 81.2.

All three components of the Index reached record highs, signaling a positive direction for the U.S economy.

  • CEO plans for hiring rose to 98.5, up 22.8 from the previous quarter.
  • Plans for capital investment rose to 115.4, up 22.7 from Q4 2017.
  • Expectations for sales reached 141.9, an increase of 19.9 from the last quarter.

In their second estimate for GDP in 2018, CEOs project 2.8 percent GDP growth for the year, compared to the previous quarter’s estimate of 2.5 percent for the year.

Additional details can be seen in the sources mentioned above.


I post various economic forecasts because I believe they should be carefully monitored.  However, as those familiar with this site are aware, I do not necessarily agree with many of the consensus estimates and much of the commentary in these forecast surveys.


The Special Note summarizes my overall thoughts about our economic situation

SPX at 2662.84 as this post is written