Confidence index parallels SBJ survey

SBJ Staff

Posted online January 2, 2005 | 11:00 pm

The TEC Confidence Index, based on a quarterly survey of more than 2,300 CEOs, rose to 111.8 for the fourth quarter of 2004, up from 110.4 in the preceding quarter. The movement demonstrates confidence in continued expansion of the economy during 2005, according to a TEC news release.

In TEC’s survey, more than two-thirds of CEOs think economic conditions are better than a year ago, while only 7 percent feel conditions are worse than a year ago.

Many CEOs plan to increase their total number of employees. In all, 64 percent of CEOs plan to increase their total number of employees in the next year, versus 5 percent who plan to decrease payroll.

Finding qualified candidates was cited as an area of concern, and uncertainty about oil prices, government economic policies and health care were mentioned as factors that slowed hiring in the past several months.

Half of all CEOs surveyed noted that they are passing higher health care costs on to employees, while a small percentage are absorbing additional costs.

“Firms planned on increasing their hiring and investments plan to benefit from what they expect will be a continued strong economic expansion during 2005,” said Richard Curtin, PhD, director of consumer surveys at the University of Michigan and consultant for the TEC Confidence Index, in the release.

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