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Wednesday, April 08, 2009

CEOs Down on Economy, But Others Getting More Cheery? reported on April 7 that CEOs at major U.S. businesses have become more pessimistic on the economy than they were three months ago based on information from the Business Roundtable.

The report noted:

The CEO confidence index fell to minus-5 in the first quarter from 16.8 in the fourth quarter, the business trade group said. The index, which ranges from minus-50 to 150, was at 79.5 a year ago. The chief executives expect the economy to contract 1.9% in 2009; three months ago, they thought the economy would be flat.

However, the same report noted:

Although executives are more pessimistic, some other surveys show consumers and investors are gaining confidence after optimism plummeted late last year. The Investors' Business Daily monthly optimism index rose to 49.1 in April from 45.3, the highest level since November and close to the 50 mark that would show optimism and pessimism are evenly balanced, IBD reported Tuesday… The daily Rasmussen surveys on consumer and investor attitudes also are up sharply from the first of the year.

So, who is right?

Raymond J. Keating
Chief Economist
Small Business & Entrepreneurship Council

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