America’s CEOs are more confident now than they were earlier this year, according to The Conference Board Measure of CEO Confidence™ in collaboration with The Business Council. The measure stood at 64 at the end of September, up from 45. (A reading above 50 points reflects more positive than negative responses.)
CEOs’ assessment of general economic conditions improved significantly compared to the start of Q3, with 70% of CEOs reporting economic conditions were better compared to six months ago, up from 8%. Conversely, only 21% say conditions are worse, down from 90%.
Likewise, 64% of CEOs expected economic conditions to improve over the next six months. Only 15% expected conditions to worsen.
“CEOs entered Q4 significantly more upbeat than they were earlier this year,” said Dana Peterson, chief economist of The Conference Board. “Notably, talent shortages eased in the wake of COVID-19 and nearly two-thirds of business leaders said they anticipated little, if any, problems with attracting qualified workers. Nonetheless, uncertainty around the pandemic—and its aftermath—remains a risk to Q4’s newfound optimism as we enter 2021.”
Despite increased confidence, CEOs indicated that their hiring plans have cooled, and the potential for layoffs remained. In fact, one-third of CEOs said they anticipate reducing their workforce over the next 12 months. The good news is that only 5% of CEOs said they may reduce wages.
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