CEO Confidence Surges to Three-Year High, Reflecting Optimism in Business Outlook
Key Findings:
* Conference Board's CEO Confidence Index jumps 9 points to 60 in Q1 2025, highest level in three years.
* CEOs express increased optimism about current and future economic conditions.
* 73% of CEOs plan to grow or maintain workforce size despite labor shortages easing.
Executive Sentiment:
* CEOs cite improved economic conditions (44% report improvement from six months ago) and easing of business risks.
* 56% expect economic conditions to improve in the next six months, up from 33% in Q4 2024.
* Concerns over cyber threats, regulatory uncertainty, and supply chain disruptions have decreased.
Labor Market Dynamics:
* While labor shortages persist, respondents report a shift towards a "low hire, low fire" environment.
* The share of CEOs planning to expand workforce falls to 32% from 40% last quarter.
* 41% plan no change in employment, up from 34%.
Contrast with Consumer Sentiment:
* CEO optimism contrasts with recent consumer surveys indicating low consumer confidence due to inflation concerns.
* Conference Board's consumer confidence measure for February expected on Tuesday, February 25.