The Chief Executives’ Confidence Measure, which had improved to 56 points in the final quarter of 2005, edged up to 57 points in the first quarter of 2006, The Conference Board reports in its latest CEO survey. CEOs’ assessment of current business conditions improved, with 49 percent saying current economic conditions are better, up from nearly 44 percent in the fourth quarter of 2005. In assessing their own industries, business leaders were also more optimistic than last quarter—about 52 percent say conditions are better, up from 39 percent in the prior survey.

However, more CEOs forecast employment declines in their industry. Additionally, they aren’t as optimistic about the next six months as they were in the final quarter of 2005. Only 35 percent of business leaders expect economic conditions to improve in the coming months, down from 41 percent last quarter. Health care costs remain the major obstacle to hiring more workers, with regulation and litigation being secondary obstacles.

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