Chief execs have not been this positive in their organization overview in 3 years.
Data out Thursday revealed the Conference Board’s step of chief executive officer self-confidence raised 9 factors in the initial quarter of 2025 to an analysis of 60, its highest degree in 3 years. The Conference Board included that the action over 50 shows a change from “cautious optimism” to “confident optimism” amongst magnate.
The study consisted of reactions from 134 United States Chief executive officers and was carried out in betweenJan 27 andFeb 10.
“The improvement in CEO Confidence in the first quarter of 2025 was significant and broad-based,” Stephanie Guichard, elderly economic expert of international indictors at the Conference Board stated in the launch “All components of the Measure improved, as CEOs were substantially more optimistic about current economic conditions as well as about future economic conditions—both overall and in their own industries.”
A positive outlook on the labor market helped contribute to the upbeat attitude from CEOs with 73% of CEOs planning to grow or maintain the size of their workforce over the next 12 months. Executives also noted labor shortages continued to ease with more respondents reporting “no or little problems hiring.”
However, there were signs of the “low hire, low fire” environment that economists have used to describe the current labor market dynamic. The share of CEOs expecting to expand to their workforce over the next year fell to 32% down from 40% last quarter, while the share planning to no change in total employment rose to 41% up from 34%.
Broadly though, executives expressed upbeat confidence in both the current and future economic outlook, with 44% of CEOs reporting economic conditions were better than six months ago, from just 20% last quarter. Over the next six months, 56% of CEOs expect economic conditions to improve compared to just 33% seen in the prior quarter.
“CEOs also reported an easing of concerns regarding a range of business risks,” stated Roger W. Ferguson, Jr., the vice chairman of the Business Council and chair emeritus of theConference Board “Compared to Q4 2024, fewer CEOs ranked cyber threats, regulatory uncertainty, financial and economic risks, and supply chain disruptions as high-impact risks. The one exception was geopolitical instability, which 55% of CEOs in Q1 saw as a high-impact risk to their industry—up from 52% last quarter.”
Thursday’s positive belief from company leaders runs counter to just how customers have actually reported sensation in current studies. In February, the University of Michigan’s customer belief study struck a seven-month reduced in the middle of problems concerning greater rising cost of living over the following year.
