U.S. CEOs feeling better about the economy

A customer visits a supermarket in San Mateo, California, on Dec. 12, 2023.

Li Jianguo | Xinhua News Agency | Getty Images

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It seems American CEOs are feeling more upbeat about the state of the economy.

For the first time in two years, the index that measures sentiment among U.S. chief executives has turned positive, the latest Conference Board report showed. 

It rose to 53 in the first quarter, up from 46 in the final three months of 2023. A reading above 50 suggests CEOs have become optimistic about what’s ahead for the economy. 

CEOs also cited reduced inflation (34%) and Federal Reserve interest rate cuts (28%) as top developments that might benefit businesses. 

The positive turn in confidence is consistent with recent economic data that showed a resilient economy and a robust labor market as well as slowing inflation.

Moreover, the recent slate of stellar corporate earnings have led to a booming stock market, with the S&P 500 briefly crossing the key 5,000-point threshold for the first time.  

Despite CEOs’ bullishness, caution also remains. 

Asked to identify the biggest business challenge in the U.S. this year, an overwhelming 51% pointed to the upcoming presidential elections.  

This isn’t surprising as President Joe Biden confronts a dissatisfied electorate and a challenging political climate nine months before he faces reelection, according to a new national NBC News poll.

Wall Street will have to deal with this uncertainty that will no doubt loom over business sentiment in the months to come.

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