06/08/2020

As Economy Reopens In June, CEO Confidence Inches Up

A nationwide survey shows CEOs are growing more optimistic than expected

The reopening of businesses across nation is sparking a resurgence in CEO optimism, with business leaders across the country feeling an increasing confidence in both current and future economic conditions—as well as their ability to grow revenue, hire employees and spend on their companies.

Confidence in current business conditions jumped 14 percent in the first few days of June versus May, according to Chief Executive’s CEO Confidence Index, and CEO confidence in business conditions a year from now rose 2 percent over the prior month. CEOs we talked to attribute the growing optimism to the reopening of the economy, interest rates being at an all-time low, order backlogs and revitalized consumer demand across many sectors.

The reading of business conditions a year from now is back where it was at this time last year, at 6.5 out of 10 on our 1-10 scale. Nevertheless, it remains 7 percent below its peak in February, before the onset of the COVID-19 crisis. Our reading of current business conditions remains in “weak” territory, at 4.6 out of 10, according to our scale, down 34 percent from where it began the year. CEOs say their optimism is being tempered by concerns over a potential second wave of COVID-19, social unrest, the presidential election and spiking unemployment. One respondent summed up the general sentiment: “Can’t be worse than the last two months, but there is still some uncertainty.”

Please select this link to read the complete article from Chief Executive.