CEOs turn pessimistic about US economy as supply risks mount

[WASHINGTON] Confidence among chief executive officers about the US 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, based on results published on Thursday (May 28). Readings below 50 indicate more negative than positive responses.

Some 141 CEOs participated in the survey, which was conducted from May 4 to 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,” said Dana Peterson, chief economist at the Conference Board.

Nearly half of the respondents said that economic conditions were worse, a dramatic swing from the 8 per cent who said as much in the first quarter.

Forty per cent see the business climate worsening in the next six months, up from 13 per cent in the previous survey.

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At the same time, CEOs are not wavering on their capital spending plans. About 37 per cent are expecting to increase outlays, a larger share than in the first quarter.

Roger Ferguson, vice chairman of the Business Council and chair emeritus of the Conference Board, said: “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.” BLOOMBERG