Last week, the Conference Board reported the Measure of CEO Confidence for the first quarter of 2021 to be at 73, a 17-year high for the reading. As the Board notes, readings above 50 reflect there were more positive than negative responses. The survey was conducted through Jan. 14 to Jan. 29.

When looking at the consumer, however, the Conference Board's reading shows consumer confidence at 89.3, far below the 135 reading prior to the pandemic-induced recession. The consumer reading is anticipated to be updated in the coming week. Of significance is the fact other consumer confidence and sentiment readings, like University of Michigan's, also show lower levels of consumer confidence.

With respect to the CEO Confidence measure, the Conference Board's report noted:

• "67% of CEOs reported economic conditions were better compared to six months ago, down slightly from 70%.
• "However, only 10% said conditions were worse, down from 21%.
• "78% of CEOs anticipated improved conditions in their industry, up from 65%.
• "7% expected conditions to worsen, down from 11%."

CEO confidence is important, as it can drive increased hiring. In fact, the survey did highlight that 47% of CEOs expect to expand their workforce over the next 12-months versus the 33% reported in the September survey.

Seeing an improvement in consumer confidence is important as well, as the consumer represents 70% of economic activity. Last week's unexpected increase in initial jobless claims to 861,000 (765,000 forecasted) is a trend that needs to be reversed.

Pent-up demand and falling virus cases will likely drive positive economic activity in the near-term, however, broader improvement in the employment market is needed to see sustained economic growth into 2022.