CEO Confidence Surges to Three-Year High
Recent data indicates a surge in CEO confidence, reaching a three-year peak. The Conference Board's CEO Confidence Index rose by nine points to 60 in the first quarter of 2025.
This shift to "confident optimism" is attributed to:
* Improved current and future economic outlook
* Positive labor market outlook
Labor Market Dynamics
73% of CEOs plan to expand or maintain their workforce size in the next year. However, there are signs of a "low hire, low fire" environment, with fewer CEOs (32%) expecting to expand their workforce compared to last quarter (40%).
Economic Outlook
CEOs are optimistic about both current and future economic conditions, with 44% reporting an improvement over the past six months (up from 20%). Additionally, 56% anticipate an improvement in the next six months (up from 33%).
Business Risks
CEOs have reported a reduction in concerns about business risks, including cyber threats, regulatory uncertainty, and financial risks. However, geopolitical instability is seen as a high-impact risk by 55% of CEOs.
Contrast with Consumer Sentiment
While CEOs are feeling increasingly confident, consumer sentiment remains low. The University of Michigan's consumer sentiment survey recently hit a seven-month low due to inflation concerns.
Upcoming Releases
The Conference Board's consumer confidence measure for February is expected to be released on February 25th.