The Conference Board found that 98% of CEOs surveyed are preparing for a U.S. recession, while 99% of CEOs are preparing for a European recession. “Business confidence fell further at the start of the fourth quarter and is at its lowest level since the Great Recession“, the organization said.
98% of CEOs expect a recession in the U.S.
The Conference Board website released its measure of CEO confidence on Thursday. The Conference Board is a global, nonprofit research group whose members include more than 1,000 public and private companies and organizations in 60 countries.
The measure of CEO confidence is “A barometer of the health of the U.S. economy from the perspective of American business leaders” the Conference Board described, adding that its fourth-quarter survey was conducted between Sept. 19 and Oct. 3 and that a total of 136 business leaders participated.
“The recent survey asked CEOs to describe the economic conditions they are preparing to face over the next 12 to 18 months“, the board described, adding:
An overwhelming majority – 98% – said they were preparing for a U.S. recession. In addition, 99% of CEOs said they were preparing for a recession in the EU.
Dana M. Peterson, chief economist of the Conference Board, commented, “CEO confidence fell further at the start of the fourth quarter and is at its lowest level since the Great Recession.“
Roger W. Ferguson, Jr, vice president of the Business Council and a trustee of the Conference Board, said, “CEOs are now bracing for almost inevitable recessions in both the United States and Europe. While the vast majority still expect the U.S. recession to be short and shallow, nearly 7 in 10 believe the EU will enter a deep recession with serious global repercussions.“
Many people have predicted that the U.S. economy will enter a recession. JPMorgan CEO Jamie Dimon warned that the recession could be six months away and that the stock market could easily fall another 20 percent. In June, the executive warned of an economic hurricane coming, advising people to be prepared. In August, the JPMorgan boss doubled down on his warning, warning that “something worse” that a recession could occur.
Citadel CEO Ken Griffin said last month that inflation may have peaked but a recession is coming. “We are in a very uncertain time for investors“, Griffin pointed out. Tesla CEO Elon Musk also believes we will have “A mild recession for 18 months“.
Lawmakers are also concerned that the U.S. economy is sliding into recession. Senator Elizabeth Warren (D-MA) said in August that she was “very concerned“of the Federal Reserve raising interest rates and tipping the U.S. into recession.