CEOs signal layoffs, confidence plummets as economic outlook darkens in 2026
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Corporate leadership across America appears to have lost faith in the current trajectory of the US economy, swinging sharply from optimism to pessimism in just three months.
The Conference Board Measure of CEO Confidence, in partnership with The Business Council, conducted its quarterly survey of 141 CEOs and found that the overall score fell to 47 in Q2 from 59 in Q1. Any reading below 50 means a negative opinion rather than a positive number.
Only 15% of CEOs say the economy is better than six months ago, down from 39% in Q1, and 47% say it’s worse, down from 8%.
Additionally, 40% of respondents expect economic conditions to worsen over the next six months, compared to 13% who felt that way last quarter.
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“CEO confidence returned to negative territory in Q2 2026, reversing the increase in optimism in the first quarter,” said Conference Board Chief Economist Dana M Peterson in a press release. “The CEOs reported that the economy is in the worst state it has been in the past six months and they expect that the economic conditions will be very weak in the next six months.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, Monday, June 1, 2026. (Getty Images)
“Regarding their industries, the CEO’s assessment of current conditions and expectations six months down from the previous quarter,” he continued.
The Bureau of Economic Analysis (BEA) released the final GDP reading for the fourth quarter less than a month ago, showing that the economy grew at an annual rate of 0.5% in the three-month period covering October, November and December.
That figure was lower than the expectations of economists polled by LSEG, who had estimated GDP growth at 0.7%.
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“Despite strong growth of 2.1% for the year, 2025 will likely be remembered as the year that ‘could have been,'” EY-Parthenon chief economist Gregory Daco previously told FOX Business. “The outlook for 2026 looks even more bleak. The conflict in the Middle East is expected to exacerbate existing headwinds, with rising inflation, weak real growth in disposable income, and tighter financial conditions continuing to dampen economic growth.”
The business downturn is attacking the future plans of CEOs, with companies signing up for belt-tightening, reducing hiring plans and preparing for possible layoffs.
Thirty-one percent of respondents expect to reduce their workforce in the next six months, now surpassing 28% who plan to increase employment; planned wage increases are losing steam, focusing on the 3% to 4% range; and 53% of CEOs reported “some problems in other areas” when hiring.
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“The ‘low-rent, high-cost’ economy is here to stay,” said The Business Council Vice Chairman and The Conference Board’s Chairman-Elect Roger W. Ferguson, Jr. “The share of CEOs who plan to increase the size of their workforce in the next 12 months fell, while those who expect job cuts rose slightly.”
“Among the top business risks affecting their industries, CEOs are most concerned about cyber risks, with nearly two-thirds citing them as a major risk in Q2. Geopolitical risks and AI & new technologies also remained a major concern,” he added. “Risks associated with supply chains and energy increased in importance and intensity in Q2.”
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Eric Revell of FOX Business contributed to this report.
