A significant majority of CEOs are worried about an upcoming potential recession, while many are also worried about the issue of margin compression, according to the latest survey by business research firm The Conference Board.
More than 60 percent of global CEOs are expecting a recession in their primary location of operation within the next 12 to 18 months, the June 17 survey said (pdf). This sentiment is shared by other C-suite executives. Fifteen percent of CEOs claimed that their regions were already in recession.
CEO confidence is seeing a “significant drop” owing to various factors like heightened geopolitical risks, renewed supply chain disruptions, high energy prices, the war in Ukraine, and COVID-19 lockdowns in China that are putting “downward pressure” on economic growth. Together with restrictive fiscal and monetary policies, these factors are fueling “recession expectations,” said the report.