Confidence hits a wall
CEO confidence dropped to 47 in the second quarter of 2026, sliding below the neutral 50 threshold and signaling that top executives expect conditions to worsen, according to a new survey from a major business research group. Nearly half of CEOs — 47% — said the economy is worse today than it was six months ago, while only 24% reported improvement. The readings mark the lowest confidence level since the early pandemic period.
Hiring and spending freeze ahead
Corporations are signaling a pullback. Planned hiring and capital expenditure intentions both declined sharply in the survey, with executives citing uncertainty around trade policy, persistent inflation in services, and softening consumer demand. J.P. Morgan's 2026 Business Leaders Outlook found that optimism about the national economy has stabilized at a subdued 39%, down from more than 60% two years ago. Small business sentiment has also deteriorated.
Brace for second-half slowdown
Wall Street economists are trimming GDP forecasts for the second half of 2026. While the labor market remains relatively tight, the combination of elevated interest rates, tariffs, and political uncertainty has created a cautious mood in corporate boardrooms. Many CEOs are prioritizing cost control and balance sheet strength over expansion through the remainder of the year.