CEO Confidence Increased Slightly in Q2
July 17, 2015 | The Conference BoardEstimated reading time: 3 minutes
The Conference Board and PwC Measure of CEO Confidence, which had declined in the first quarter of 2015, increased slightly in the second quarter. The measure now reads 58, up from 57 in the first quarter of 2015 (a reading of more than 50 points reflects more positive than negative responses).
“Optimism among CEOs increased moderately in the second quarter with expectations for the U.S. and globally slightly more upbeat. However, the outlook for China remains cautious while expectations for Brazil remain negative,” said Lynn Franco, Director of Economic Indicators at The Conference Board. “More than two-thirds of CEOs expect profits will increase over the coming year, with market/demand growth and cost reductions the major driving forces.”
CEOs’ appraisal of current economic conditions was less positive than last quarter. Now, just 46 percent claim conditions are better compared to six months ago, down from 55 percent in the first quarter of the year. However, business leaders’ assessment of conditions in their own industries was more positive, with 49 percent saying conditions in their own industries have improved, compared with 35 percent in the prior quarter.
CEOs were more optimistic overall regarding the short-term outlook than earlier this year. Slightly over 38 percent of business leaders anticipate economic conditions will improve over the next six months, up marginally from last quarter. Expectations for their own industries were more upbeat, with 40 percent of CEOs anticipating an improvement versus 34 percent in the first quarter of this year.
Global Outlook
CEOs were less positive in their assessment of current economic conditions for the U.S. and India, although overall sentiment remains in positive territory. Sentiment regarding Europe and Japan has shifted and is now more upbeat, but CEOs’ assessment of current conditions in China and Brazil has grown more pessimistic, and remains in negative territory.
Looking ahead, CEO expectations for the U.S. and globally were more positive, but the outlook for China remains cautious and expectations for Brazil negative.
Market/Demand Growth and Cost Reductions Primary Drivers of Profit Growth
Regarding profit expectations over the next 12 months, 69 percent of CEOs surveyed expect profits will increase. Executives in the durable industries are more optimistic, with almost three out of four expecting profits to increase. About 70 percent of CEOs in the nondurables industry and 64 percent in services expect an increase in profits.
Among chief executive officers who expect profits to rise, 43 percent say market/demand growth will be the primary driving force, while 41 percent cite cost reductions. The remaining 16 percent are equally divided between new technology or price increases as the main source of improvement.
Survey results were fielded from mid-May to mid-June
Source: CEO Confidence Survey 2nd Quarter 2015
The Conference Board
About the PwC Network
PwC firms help organizations and individuals create the value they’re looking for. We’re a network of firms in 158 countries with more than 180,000 people who are committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at: www.pwc.com.
© 2015 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved. PwC refers to the United States member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
About The Conference Board
The Conference Board is a global, independent business membership and research association working in the public interest. Our mission is unique: To provide the world’s leading organizations with the practical knowledge they need to improve their performance and better serve society. The Conference Board is a non-advocacy, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States.
Suggested Items
KIC’s Miles Moreau to Present Profiling Basics and Best Practices at SMTA Wisconsin Chapter PCBA Profile Workshop
01/25/2024 | KICKIC, a renowned pioneer in thermal process and temperature measurement solutions for electronics manufacturing, announces that Miles Moreau, General Manager, will be a featured speaker at the SMTA Wisconsin Chapter In-Person PCBA Profile Workshop.
The Drive Toward UHDI and Substrates
09/20/2023 | I-Connect007 Editorial TeamPanasonic’s Darren Hitchcock spoke with the I-Connect007 Editorial Team on the complexities of moving toward ultra HDI manufacturing. As we learn in this conversation, the number of shifting constraints relative to traditional PCB fabrication is quite large and can sometimes conflict with each other.
Standard Of Excellence: The Products of the Future
09/19/2023 | Anaya Vardya -- Column: Standard of ExcellenceIn my last column, I discussed cutting-edge innovations in printed circuit board technology, focusing on innovative trends in ultra HDI, embedded passives and components, green PCBs, and advanced substrate materials. This month, I’m following up with the products these new PCB technologies are destined for. Why do we need all these new technologies?
Experience ViTrox's State-of-the-Art Offerings at SMTA Guadalajara 2023 Presented by Sales Channel Partner—SMTo Engineering
09/18/2023 | ViTroxViTrox, which aims to be the world’s most trusted technology company, is excited to announce that our trusted Sales Channel Partner (SCP) in Mexico, SMTo Engineering, S.A. de C.V., will be participating in SMTA Guadalajara Expo & Tech Forum. They will be exhibiting in Booth #911 from the 25th to the 26th of October 2023, at the Expo Guadalajara in Jalisco, Mexico.
Intel Unveils Industry-Leading Glass Substrates to Meet Demand for More Powerful Compute
09/18/2023 | IntelIntel announced one of the industry’s first glass substrates for next-generation advanced packaging, planned for the latter part of this decade.