The cloud of Covid-19 keeps impacting CEO confidence, according to The Conference Board. It found that 38% of CEOs expect to reduce their workforces over the next 12 months, according to its survey of top execs for its Measure of CEO Confidence indicator released today.
In addition, more than a third of CEOs don’t plan to increase employee wages over the next 12 months. And half say they only plan to increase wages by less than 3%.
“Without substantial containment of Covid-19, widespread uncertainty will continue being the dominant cloud hanging over America’s CEO community,” said Bart van Ark, chief economist of The Conference Board. “With more than one-third of CEOs planning to make workforce and sizeable capital spending reductions over the next year, the effects on the economy could extend beyond the next 12 months.”
It found 62% of CEOs expect economic conditions will improve over the next six months, but that is down from 71% who said the same in a similar survey in the previous quarter.
Still, The Conference Board Measure of CEO Confidence rose to a reading of 45 this quarter from 44 in the second quarter. However, readings below 50 points reflect more negative than positive responses.
The measure’s survey took place from July 15 through July 31.