CEO Confidence continues to recover.


ARE BUSINESS LEADERS BECOMING MORE SANGUINE about the economy? According to Chief Executive magazine's CEO Index, which measured another strong resurgence in May based on 153 responses collected from America's top executives, optimism--albeit in a cautious tone among business leaders--is on the rise. In May, all components of the CEO Index continued to increase after a strong recovery in last month's index.

The CEO Confidence Index rose 9 percent, to 75.7 points in May, for a 48 percent gain since it reached its lowest point in February 2009. Of the five subindices, the Business Conditions Index, used to measure confidence in business conditions, made the biggest gain, jumping more than 22 percent, to 68 points. Since reaching an all-time low just two months ago in March 2009, the Business Condition Index has rebounded 83 percent. CEOs reckon we've hit bottom.

For the second straight month the Future Confidence Index, which measures the outlook of employment, economic and capital spending opportunities over the next quarter, is higher than current confidence, implying that CEOs think business conditions will improve in the coming quarters. Similarly, CEOs' confidence in current business conditions has also improved, with the Current Confidence Index, which measures the confidence of current employment, economic and investment conditions, increasing 4 percent to reach nearly 70 points, the highest point since November 2008 when the...

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