A recent survey conducted by The Conference Board and The Business Council reveals that CEOs of major companies have lost confidence in the economy, with CEO confidence dropping 12 points to a score of 47 in the second quarter of the year. This score indicates a negative sentiment, as any number below 50 reflects more negative than positive responses. The survey included 141 chief executives from the Fortune Global 500 and was conducted between May 4 and May 18, coinciding with the third month of the ongoing Iran war.
The survey results show that 47% of CEOs believe economic conditions have worsened, an increase from 8% at the beginning of the year. Additionally, only 15% of CEOs reported that economic conditions are better compared to six months ago, down from 39% in the first quarter of the year. While CEO confidence has declined, stock investors have not reacted negatively, and a growing number of CEOs indicated plans to increase capital investment over the next year.
This decline in CEO confidence reflects a broader trend, as general consumer optimism about the economy has also decreased, according to various recent surveys.