The third-quarter Conference Board Measure of CEO Confidence dipped slightly, reflecting a weakening in CEOs’ views on current economic conditions compared to the second quarter.

However, most US CEOs no longer anticipate a recession in the coming year, according to the report.

The measure fell to a reading of 52 this quarter, down from 54 in the second quarter. While the reading is the lowest of 2024, it indicates moderate optimism as readings above 50 reflect more positive than negative responses.

Still, “negative views about current economic conditions outweighed positive views of the economy, with more CEOs saying that conditions have worsened compared to six months ago than saying they improved, Roger Ferguson, Jr., vice chairman of The Business Council and chair emeritus of The Conference Board, said in a press release.

Ferguson noted that CEOs’ views about current conditions in their own industries also deteriorated.
“CEOs’ views about the economy going forward were little changed, but still positive on net,” Ferguson said. The balance of opinions on future conditions in own industries was also stable and moderately positive.”

Dana Peterson, chief economist of The Conference Board, said in a press release that easing perceptions of labor shortages in the third quarter led fewer CEOs to anticipate difficulties finding qualified workers.

“The share of CEOs expecting no problem hiring rose to pre-Covid levels,” Peterson said. “Most CEOs planned to continue hiring or keep their workforce unchanged, but there was a slight increase in the share of CEOs expecting to reduce their workforce,” Peterson said.

Other findings in the report:

• 26% of CEOs described economic conditions as worse than six months ago, up from 16% in the second quarter; 20% said economic conditions were better than six months ago, down from 30% in the second quarter.
• CEOs’ views on their own industries turned negative, with 31% reporting worse conditions than six months ago, up from 26% in the second-quarter survey. Conversely, 26% said conditions were better, down from 30% in the second quarter.
• 40% of CEOs expect to expand their workforce over the next 12 months, up from 33% in the second quarter. Meanwhile, 23% of CEOs expect to reduce their headcount, up from 21% in the second quarter survey.
• 70% of CEOs anticipate raising wages by more than 3% over the next year.
• 27% of CEOs report problems attracting qualified workers, but only in key areas, though just 12% reported serious and/or widespread problems attracting qualified workers. Additionally, 10% reported no problem hiring, up from 6%.
• Cyber, geopolitical instability and legal and regulatory uncertainty are the top concerns for CEOs.

The survey included 130 CEOs and took place from July 15 to 29.