CEOs prepare for economic slowdown, survey says

Some CEOs are urging the government to focus on longterm growth solutions like recommitting to domestic energy.

Updated: June 17, 2022 - 11:37am

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The county's top executives are losing confidence in the U.S. economy and marketplace, amid record-high inflation and concerns about a recession, according to recent survey.

The survey earlier this month by Business Roundtable found 177 of the leaders of the country's largest companies were still planning to hire and invest at relatively high rates, though the numbers have slumped considerably since early March.

The results, as reported by Axios, indicate that all CEOs are not preparing for the economic meltdown, which some have warned is coming, but many are preparing themselves for a decided slowdown.

The survey was also taken prior to last week's higher-than-anticipated inflation report, the Fed's plan for a considerable rate hike, and the stock market's continuing plunge. 

Half of CEOs say they still plan to increase employment levels over the next six months, a figure that is down 18 percentage points since last quarter.

Compared to 60% last quarter, 47% say they will increase capital investment plans, and 72% say they expect sales to increase in the next six months. 

In a statement following the survey results, General Motors CEO Mary Barra, chairwoman of the Business Roundtable, said, "The softening of quarterly CEO sentiment reflects uncertainty driven by the unprecedented times we face as a nation and global community."

The CEO of Business Roundtable, Josh Bolten, said the best thing for the administration and Congress to be focused on right now is pursuing "policies that alleviate inflation pressures and promote long-term growth."

That includes recommitting to "domestic energy investment" and lowering tariffs.