Confidence of CEOs in US economy hits 15-year low: Survey
What's the story
CEOs in the US are least confident about the economy since 2012, a recent survey has found.
The Chief Executive Group's latest CEO Confidence Index, conducted on March 4 and 5, witnessed a sharp decline in business confidence among more than 220 US-based CEOs.
The decline comes after a surge in optimism following the presidential election in November last year.
Unusual dip
Confidence index shows unusual volatility
Melanie Nolen, head of research at Chief Executive Group, was surprised by the extent and speed of this dip in confidence.
She said such significant month-to-month changes are uncommon.
In mid-January, the surveyed CEOs were highly optimistic about an impending recovery. However, recent tariffs and trade issues have contributed to their sudden shift in sentiment.
Economic outlook
CEOs rate current business conditions as poor
Notably, the survey also showed a sharp decline in CEOs' evaluation of current business conditions in the US.
The rating fell by 20% from 6.3 to 5 out of 10 (on a scale where one is considered poor and 10 is excellent).
This is the lowest since spring of 2020 when businesses across the globe were compelled to shut down due to the COVID-19 pandemic.
Future
Expectations for future business conditions have also declined
The survey also underscored a drop in CEOs' expectations for future business conditions.
Only 39% of the surveyed CEOs now believe that the business climate shall improve this year, down from 52% at the start of 2025.
Meanwhile, 36% expect things to worsen, up from 20% in January.
The forecast for what these conditions will look like a year from now has dropped by an even greater margin—28% from 7/10 in January to 5/10 in March.