CEO Confidence Index Methodology
Chief Executive surveys CEOs each month to compile our CEO Confidence Index data. As of February 2011, we have enhanced and updated our surveying method to improve our results.
The CEO Confidence Index value is a rating from 1 to 10 of CEOs’ expectations for overall business conditions. As such, it captures an accurate assessment of how confident CEOs are in the economy and prospects for business over the coming year.
In addition to the responses collected for the Confidence Index value, we also ask CEOs to assess current overall business conditions and the prospects for each CEO’s own company over the coming year.
Survey results are released each month on ChiefExecutive.net and covered in each issue of Chief Executive magazine.
Our historical results for the CEO Confidence Index have been normalized to correspond to our updated surveying method.
The questions asked are as follows:
What is your assessment of current business conditions on a 1-10 scale? (10 = Excellent)
What do you expect overall business conditions to be like one year from now on a 1-10 scale?
Over the next 12 months, what changes do you forecast for your firm compared to the past 12 months? (This question is asked for revenue, number of employees, capital expenditures, and profits.)
CEOs are guided by giving them the following word associations to each value:
10 = Excellent
8 = Very Good
6 = Good
4 = Weak
2 = Poor
If you are interested in learning more about the CEO Confidence Index or gaining access to the historical data, please e-mail Chief Executive Research.