And when asked to rate the current business environment, CEO confidence was also high, with a rating of 6.7 out of 10, up 12 percent since May—also a 12-month high.
“Our sales have grown by over 40 percent in the last two years, and our order book continues to grow. We do not see a short-term slowdown in our industry,” said Scott Glaze, CEO of wire manufacturer Fort Wayne Metals.
“More is being spent on services,” said John Zenger, CEO of leadership development firm Zenger Folkman, when asked to explain his optimism for the year ahead. “Consumer confidence remains high. Concerns about an impending recession have not materialized. Inflation is coming down. Trump will be disqualified from running for Presidency, and this will be less polarized.” He expects business conditions to rate at 9 out of 10 by this time next year.
“We have a record backlog of work and see no slowdown in opportunities to bid more work. The architects and engineers in the Southeast have robust backlogs, which means that more projects are in the pipeline,” said Mike Rogers, president of Rogers & Willard, a mid-sized construction company.
CEOs across various industries shared the optimism, highlighting a trend that goes beyond specific sectors. One group is an outlier, though: Financial services CEOs anticipate conditions to be much more difficult, rating the future environment a 4.4 out of 10, more than 30 percent lower than the average.
It’s also important to note that most CEOs don’t expect conditions to improve significantly in the short term, either. Only 28 percent of the 123 CEOs polled June 6-8 said they were hopeful business would improve by this time next year—down from 34 percent last month. Instead, 38 percent said they anticipate more of the same by June 2024, and 34 percent expect conditions to deteriorate some more over the next 12 months, just not as much as they had anticipated in recent months.
Interestingly, the proportion of those who expect the status quo has now surpassed both other groups for the first time since the pandemic.