Unfavorable assessments about the U.S economy has sent small and midsize business CEOs’ confidence in the economy declining, down 3 points to 88.4 from last quarter, according to Vistage’s Q2 2019 CEO Confidence Index. 35% of those surveyed anticipate the national economy will worsen in the coming year, a number not seen since since Q4 of 2008 since 60% held that view at the peak of the Great Recession.
The report also indicates that only 13 percent of all CEOs are optimistic about the state of economic growth, and while over half anticipate rising profits and increased revenues, percentages were still down in regard to these areas from previous quarters.
Negative economic prospects, however, seem to have no effect on hiring plans as over half of all firms plan to employ new workers over the next year. CEOs continue to value existing talent, prioritizing qualified employees as “very important,” an indicator that many companies still believe in the potential of their business.
“Damage done to the economy from the tariffs, the slowdown in job growth as well as heightened economic uncertainty has been substantial,” said Dr. Richard Curtin, research associate professor at the University of Michigan, who analyzed the data. “Despite these concerns, firms still held net favorable views that the Trump administration has helped their business.”
