HFNdex Shows Executive Confidence Inches Up, but Remains Mostly Bleak


14940

By Nathan Weber
NEW YORK–Executive confidence among retailers and manufacturers of home furnishings inched up in the second quarter, but remained well below an optimistic level.
The HFNdex, a proprietary measure based on a poll of senior executives in the industry, reached 42.4 during the quarter, up from a revised reading of 41.3.
The rise, however, did little to dispel a generally pessimistic outlook, as any reading below 50 reflects a preponderance of negative over positive outlooks.
Asked how they viewed present economic conditions versus those of six months ago, more than two-thirds of respondents said they were worse; 25 percent noted that they were “substantially” worse.
Although only one-third said they expected conditions in the next six months to worsen even further, if moderately, half expected neither improvement nor decline.
Commenting on the prospects for their own firms, a question that usually generates a more positive outlook, nearly 42 percent are looking forward to moderate growth. But the same proportion expects a decline—mostly moderate. The remainder expect profits to stay flat.