CEO confidence hits 7-year low

NEW YORK (CNNMoney.com) -- The weakening U.S. economy has driven confidence among the nation's chief executives to a seven-year low, according to the Conference Board's Measure of CEO Confidence.

The measure fell to 39 in the final quarter of 2007, sinking lower after falling to 44 in the third quarter of last year. The measure had not gone below 40 since the final quarter of 2000 when it hit 31.

A measure of more than 50 indicates more positive sentiment than negative. Once the measure goes below 50 the majority of respondents are expressing a lack of confidence.

"Given continued trouble in the housing and credit markets, persistent volatility in financial markets and increases in energy prices, it's not surprising that confidence has eroded," said Lynn Franco, Director of The Conference Board Consumer Research Center.

The measure found that only 7 percent of CEOs think economic conditions have improved since the third quarter, when 14 percent said conditions were looking better.

The outlook over the next six months is even worse. Currently, 16 percent of business leaders expect economic conditions to improve in the next six months, down from 20 percent last quarter, according to the Conference Board.

"Looking ahead, the majority of business leaders expect these lackluster economic conditions to prevail throughout the first half of 2008," Franco said.