Business leaders in the United States are feeling optimistic about the economy, despite concerns about the upcoming presidential election. This optimism is the highest it has been in two years, according to The Conference Board’s CEO confidence measure. Their survey found that 36% of CEOs expect the economic conditions to improve in the short term, showing a reversal of the pessimism that was present last quarter.
It appears that business leaders are less worried about a recession than they were a year ago. The survey found that only 27% of CEOs anticipate economic conditions will worsen in the next six months, a decline from 47%. However, they are growing concerned about how the political situation could impact their businesses. Over half of CEOs believe that political uncertainty will be the greatest challenge affecting businesses this year.
Increased regulation and high interest rates are also a concern for CEOs. Many economists have warned that another contested election could create uncertainty that would hurt markets and the economy, and could potentially lead to social unrest.
The Vice Chairman of The Business Council, Roger Ferguson, states that while CEOs are feeling better about the economy, they remain cautious about the risks ahead. Despite this optimism, many CEOs report economic conditions are better now than they were six months ago which is a notable increase since the end of last year.