CEO optimism on the rise, survey says

Things are looking up for the economy, according to more than 2,177 chief executives who participated in the Vistage CEO Confidence Index in the first quarter, according to a report released today.

The index, calculated by Vistage International Inc., a San Diego-based chief executive network focused on leadership development, rose to 60.6 in the first quarter, up from 48.7 in the fourth quarter of last year, largely due to expectations that the economic conditions will improve, the report said.

It was the largest quarterly gain in the six-year history of the index.

The percentage of executives who said they expected the economy to worsen dropped to 21% in the first quarter, from 61% at the end of 2008.

Most executives reported positive signs about their businesses. A full 74% said they planned to maintain or increase the number of employees and 72% said they will not reduce salaries in the next 12 months.

Some 67% said they expected their revenue to stay the same or increase in the next 12 months.

On the downside, about half of the firms reported they had experienced staff reductions. And half of the participants said they found credit difficult to obtain and believed there was a low probability that the federal stimulus program would improve the economy by the end of 2009.

The index surveyed chief executives of small and midsize companies from April 7 through April 16.