US CEO Confidence Drops 12 Points to 47 in Q2 as 40% Expect Further Deterioration
Updated
Updated · Morning Brew · May 29
US CEO Confidence Drops 12 Points to 47 in Q2 as 40% Expect Further Deterioration
3 articles · Updated · Morning Brew · May 29
The Conference Board’s Q2 survey of 141 Fortune 500 CEOs put confidence at 47, down from 59 in Q1 and below the 50 threshold that signals a negative outlook.
Forty-seven percent of CEOs said economic conditions worsened in Q2, up from 8% in the prior survey, while 40% expect conditions to deteriorate further over the next six months versus 13% previously.
A weaker economic backdrop is driving the shift: Q1 GDP was revised down to 1.6% from 2%, reflecting softer investment and consumer spending, while 12-month inflation hit 3.8%, a three-year high, helped by elevated gas prices.
That inflation pressure is also clouding monetary policy, with CME FedWatch showing a 37% chance of a December rate hike as skepticism grows that AI-led growth will cool prices.
The gloom extends beyond boardrooms: US consumer confidence fell in May, reinforcing a University of Michigan reading last week that showed consumer sentiment at an all-time low.
Cyber risk is the top CEO concern. Are companies prepared for AI-powered attacks?
With CEO confidence plunging, why are plans for capital investment actually on the rise?
Can the US economy recover while the Iran war rages and energy prices soar?