CEO confidence hits 3-year excessive amid optimism on labor market, economic system

Chief executives have not been this assured of their enterprise outlook in three years.

Information out Thursday confirmed the Convention Board’s measure of CEO confidence elevated 9 factors within the first quarter of 2025 to a studying of 60, its highest stage in three years. The Convention Board added that the transfer above 50 signifies a shift from “cautious optimism” to “assured optimism” amongst enterprise leaders.

The survey included responses from 134 US CEOs and was carried out between Jan. 27 and Feb. 10.

“The development in CEO Confidence within the first quarter of 2025 was important and broad-based,” Stephanie Guichard, senior economist of world indictors on the Convention Board mentioned within the launch “All parts of the Measure improved, as CEOs have been considerably extra optimistic about present financial circumstances in addition to about future financial circumstances—each total and in their very own industries.”

A constructive outlook on the labor market helped contribute to the upbeat angle from CEOs with 73% of CEOs planning to develop or preserve the scale of their workforce over the following 12 months. Executives additionally famous labor shortages continued to ease with extra respondents reporting “no or little issues hiring.”

Nevertheless, there have been indicators of the “low rent, low fireplace” atmosphere that economists have used to explain the present labor market dynamic. The share of CEOs anticipating to increase to their workforce over the following yr fell to 32% down from 40% final quarter, whereas the share planning to no change in whole employment rose to 41% up from 34%.

Broadly although, executives expressed upbeat confidence in each the present and future financial outlook, with 44% of CEOs reporting financial circumstances have been higher than six months in the past, from simply 20% final quarter. Over the following six months, 56% of CEOs anticipate financial circumstances to enhance in comparison with simply 33% seen within the prior quarter.

“CEOs additionally reported an easing of issues concerning a spread of enterprise dangers,” mentioned Roger W. Ferguson, Jr., the vice chairman of the Enterprise Council and chair emeritus of the Convention Board. “In comparison with This fall 2024, fewer CEOs ranked cyber threats, regulatory uncertainty, monetary and financial dangers, and provide chain disruptions as high-impact dangers. The one exception was geopolitical instability, which 55% of CEOs in Q1 noticed as a high-impact threat to their business—up from 52% final quarter.”

Thursday’s upbeat sentiment from company leaders runs counter to how shoppers have reported feeling in current surveys. In February, the College of Michigan’s shopper sentiment survey hit a seven-month low amid issues about greater inflation over the following yr.

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