New York, NY, Apr. 6--Business confidence surged to a two-decade high in the first quarter, the Conference Board said Monday, confirming other reports showing that firms are increasingly upbeat about the U.S. economy's prospects.
The Conference Board's business-sentiment index rose to 73 in the first quarter from 66 the last quarter of 2003. The first quarter's reading was the highest since the index registered 74 in the final quarter of 1983.
Index readings above 50 indicate more positive than negative responses. The Conference Board measure covers more than 100 chief executives.
"Half of all CEOs surveyed anticipate an increase in hiring plans over the course of the year, suggesting labor-market growth should gain momentum in the months ahead," said Lynn Franco, director of the Conference Board's Consumer Research Center.
Half of the chief executives surveyed said they anticipate increased employment in their industries, up sharply from under 16% a year ago.
