CEO Outlook Soars to Three-Year High: Confidence in Economic Future
Business leaders are exuding confidence in the economic outlook, reaching the highest level in three years. The Conference Board's latest survey, released on Thursday, shows a surge of nine points in CEO confidence during the first quarter of 2025, hitting a reading of 60.
The shift from "cautious optimism" to "confident optimism" is attributed to improvements in current economic conditions and future projections. CEOs are particularly upbeat about the labor market, with 73% planning to increase or maintain workforce size.
Labor shortages are easing, with more executives reporting no or minimal hiring challenges. However, the "low hire, low fire" trend persists, with a decline in the percentage of CEOs planning workforce expansion.
Despite this, executives remain optimistic, with 44% reporting better economic conditions than six months ago and 56% anticipating improvements over the next six months.
Concerns about business risks have diminished, with fewer CEOs rating cyber threats, regulatory uncertainty, and supply chain disruptions as high-impact risks. The exception is geopolitical instability, which 55% of CEOs view as a major industry threat.
While corporate leaders express optimism, consumer sentiment remains subdued, according to recent surveys. The Conference Board's consumer confidence index for February will be released on Tuesday, Feb. 25.