The Conference Board Measure of CEO Confidence, which had declined in the first quarter of 2008, inched up to 39 in the second quarter, up slightly from 38 in the first quarter (a reading of more than 50 points reflects more positive than negative responses). The last time the Measure fell below 38 was in the final quarter of 2000 when it was at 31.

Says Lynn Franco, Director of The Conference Board Consumer Research Center: "CEOs continue to rate current economic conditions as unfavorable, and their short-term expectations suggest this slow growth environment will exist for the remainder of the year."

CEOs' assessment of current economic conditions barely registered an improvement, with less than 7 percent stating economic conditions had improved, compared to 3 percent last quarter. In assessing their own industries, business leaders were more pessimistic. Approximately 9 percent claim conditions are better, down from 14 percent in the first quarter.

Looking ahead six months, the outlook was mixed, but generally pessimistic. Currently, 24 percent of business leaders expect economic conditions to improve in the next six months, up from approximately 20 percent last quarter. Expectations for their own industries, however, did not improve. Only 20 percent of CEOs anticipate an improvement in the months ahead, down from 23 percent last quarter.