CEO confidence sinks to lowest level since 2016
Confidence among the nation's top CEOs saw the biggest quarter-over-quarter drop in 7 years and hit a level not seen since the 4th quarter of 2016, according to a closely-watched survey by the Business Roundtable.
Why it matters: Corporate America's level of optimism has dramatically receded from the levels when President Trump took office. Amid heightened trade war uncertainty, CEOs have downgraded expectations for hiring, capital spending and sales growth — potentially exacerbating fears that the record economic expansion could be coming to an end.
“American businesses now have their foot poised above the brake, and they're tapping the brake periodically.”— Joshua Bolten, president and CEO of Business Roundtable, in statement
Details: The BRT's economic outlook index has declined for 6 consecutive quarters.
- At 79.2, this quarter's reading came in above the 50-point level that would indicate the onset of a recession, but the reading "suggests some moderation in the pace of economic growth going forward," the lobbying group noted in the release.
- 20% of CEOs surveyed expect their company's sales to decrease in the next 6 months — a notable jump from the 9% that said the same last quarter.