CEO Confidence Soars to Three-Year High

In a surge of optimism, chief executives expressed heightened confidence in their business prospects, marking the highest level in three years. The Conference Board's CEO Confidence Index climbed nine points to 60 in the first quarter of 2025, a reading surpassing the previous peak.

Shift from Cautious to Confident Optimism

The index's rise above 50 signifies a notable shift towards "confident optimism" among business leaders, indicating a departure from the previous "cautious optimism." The survey gathered responses from over 130 US CEOs during January and February 2025.

Improved Outlooks on Economy and Workforce

CEO optimism extended to both current and future economic conditions, with 44% reporting an improvement compared to six months prior. Furthermore, 56% anticipate favorable conditions in the coming six months.

The positive labor market outlook played a significant role in this optimism, with 73% of CEOs planning to expand or maintain their workforce. Survey respondents also observed an easing in labor shortages, with more reporting minimal hiring difficulties.

Decline in Hiring Plans

However, the "low hire, low fire" dynamic persisted, as the percentage of CEOs expecting to expand their workforce decreased to 32% from 40% in the previous quarter. Conversely, the share of those planning to maintain employment levels rose to 41% from 34%.

Diminished Concerns about Business Risks

CEOs reported a reduction in concerns about business risks, with fewer ranking cyber threats, regulatory uncertainty, and supply chain disruptions as high-impact risks. However, geopolitical instability emerged as an increasingly worrisome factor, with 55% of CEOs citing it as a high-impact risk.

Contrast with Consumer Sentiment

The optimistic outlook from business leaders contrasts with recent consumer surveys indicating declining consumer confidence. This divergence highlights the disparity in perceptions between business and consumer perspectives.