Corporate executives in America are becoming more negative about the economy, joining consumers who are also feeling less confident due to persistent inflation and increasing living expenses. A recent survey from The Conference Board and The Business Council, released on Thursday, reveals this growing pessimism.
In fact, CEO confidence dipped into negative territory in the fourth quarter of 2026, possibly influenced by rising geopolitical tensions and high oil prices, as noted by Dana Peterson, the chief economist at The Conference Board. This decline follows a notable drop in consumer sentiment and new inflation statistics indicating that Americans are facing significant price pressures. There are real concerns about the economy’s future as we move into 2027.
CEO confidence specifically fell by six points to 46 during the fourth quarter of 2026, marking its lowest level since the second quarter of 2025. The survey showed that when the readings drop below 50, it means more executives are responding negatively than positively. Conducted between September 21 and October 5, the survey included 131 CEOs.
The percentage of CEOs who expect that economic conditions will worsen in the upcoming six months has more than doubled, rising to 41% from 19% in the previous quarter. Only 13% foresee an improvement, which is down from 25% before.
Peterson remarked, “CEO confidence fell in Q4 2026 to its lowest level since Q2 2025.”
This decline among corporate leaders reflects a broader trend of increasing pessimism among American consumers. The University of Michigan’s preliminary survey for October indicates that consumer sentiment has dropped to 46.3, down from 48.1 in September, inching closer to a historic low as families navigate rising costs.
As for consumers’ views on the current economic situation, it fell to 44.7, while expectations for inflation in the coming year have increased to 4.7%.
The Conference Board’s consumer confidence index also saw a decrease in September, falling 6.7 points to 81.9, as concerns mounted regarding employment, income, and overall business conditions.
This growing pessimism follows a recent inflation report that indicated a rise in consumer prices by 3.7% annually in September, up from 3.4% in August. Gas prices surged by 9.1% that month, adding to the strain on households who are already grappling with high borrowing costs.
In terms of perceived risks, corporate executives expressed heightened concerns about factors impacting their industries. Cybersecurity emerged as the top risk, with 71% of CEOs labeling it a high-impact concern, an increase from 63% in the prior quarter. Close behind were artificial intelligence and emerging technology, rated at 64%, while geopolitical risks rose to 58%.
Interestingly, most CEOs haven’t drastically altered their investment strategies. About 53% expect their capital spending to remain steady over the next year, while 36% are looking to increase their investments, up from 31% in the previous quarter.
Hiring intentions are similarly varied; while 33% plan to grow their teams, 31% anticipate job cuts. This suggests that even with declining confidence, there hasn’t been a widespread withdrawal from spending or employment plans just yet.
