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CEOs Turn Pessimistic About Economy as Supply Risks Mount
Conference Board’s Measure of CEO Confidence Dropped to 47 From 59
Key Takeaways:
- Confidence fell sharply to 47 from 59, dipping below the neutral 50 mark and signaling more pessimism than optimism.
- Rising concerns over supply chains and energy costs are fueling expectations that economic conditions will worsen.
- CEOs are mostly maintaining capital spending plans, while continuing a “low-hire, low-fire” approach to workforce changes.
Confidence among CEOs about the U.S. economy tumbled in the second quarter as concerns intensified about supply chains and energy.
The Conference Board’s Measure of CEO Confidence dropped to 47 from 59 in the first three months of the year, according to results published May 28. Readings below 50 indicate more negative than positive responses.
Some 141 CEOs participated in the survey, which was conducted May 4-18 and released in collaboration with the Business Council.
“CEOs reported that the economy is materially worse now than it was six months ago and expected economic conditions to weaken further over the next six months,” Dana Peterson, chief economist at the Conference Board, said in a statement.
Nearly half of respondents said economic conditions were worse, a dramatic swing from the 8% who said as much in the first quarter.
Forty percent see the business climate worsening in the next six months, up from 13% in the previous survey.
CEO confidence falls into negative territory, according to The Conference Board’s new survey. Chair Emeritus Roger Ferguson breaks down the findings: https://t.co/g7XJYigYgI pic.twitter.com/s3wUoqynXM — Squawk Box (@SquawkCNBC) May 28, 2026
At the same time, CEOs are not wavering on their capital spending plans. About 37% are expecting to increase outlays, a larger share than in the first quarter.
“Additionally, the ‘low-hire, low-fire’ economy remains in place. The share of CEOs planning to increase the size of their workforce over the next 12 months edged down, while those expecting job cuts rose slightly,” Roger Ferguson, vice chairman of the Business Council and Chair Emeritus of the Conference Board, said in a statement.
