Survey: 98% of CEOs Preparing for US Recession — Confidence at Lowest Level Since Great Recession

The Conference Board has found that 98% of chief executives surveyed are preparing for a U.S. recession while 99% of CEOs are preparing for an EU recession. “CEO confidence sunk further to start Q4 and is at its lowest level since the Great Recession,” the organization said.

The Conference Board published its Measure of CEO Confidence on Thursday. The board is a global, non-profit research group with over 1,000 public and private corporations and organizations as members in 60 countries.

The Measure of CEO Confidence is “a barometer of the health of the U.S. economy from the perspective of U.S. chief executives,” The Conference Board described, adding that its Q4 survey was conducted between Sept. 19 and Oct. 3 and a total of 136 CEOs participated.

“The recent survey asked CEOs to describe the economic conditions they are preparing to face over the next 12-18 months,” the board described, adding:

An overwhelming majority — 98% — said they were preparing for a US recession. Moreover, 99% of CEOs said they were preparing for an EU recession.

Dana M. Peterson, chief economist of The Conference Board, commented: “CEO confidence sunk further to start Q4 and is at its lowest level since the Great Recession.”

Roger W. Ferguson, Jr., vice chairman of The Business Council and Trustee of The Conference Board, opined: “CEOs are now preparing for near-inevitable recessions in both the US and Europe. While the vast majority still expect the US recession to be short and shallow, nearly 7 in 10 believe the EU will enter a deep recession with serious global spillovers.”

Many people have forecasted that the U.S. economy will slide into a recession. JPMorgan CEO Jamie Dimon warned that recession could hit in six months and the stock market could easily drop 20% more. In June, the executive warned that an economic hurricane is coming, advising people to brace themselves. In August, the JPMorgan boss doubled down on his warning, cautioning that “something worse” than a recession could be coming.

Citadel CEO Ken Griffin said last month that inflation may have peaked but a recession is coming. “We’re in a very uncertain time for investors,” Griffin stressed. Tesla CEO Elon Musk also believes that we will have “a mild recession for 18 months.”

Lawmakers are also worried about the U.S. economy sliding into recession. Senator Elizabeth Warren (D-MA) said in August that she is “very worried” about the Federal Reserve raising interest rates and tipping the U.S. into recession.

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