Business leaders are becoming less worried about a recession in the U.S., according to a recent survey. After fears spiked following President Donald Trump’s tariff announcement, fewer CEOs now expect an economic downturn.
A survey by Chief Executive Group of over 270 CEOs last week found that less than 30% predict a mild or severe recession in the next six months. This is a sharp drop from 62% in April and 46% in May. Meanwhile, more than 40% of CEOs now expect some economic growth, nearly double the 23% who said this in April.
Expectations for flat economic growth have also risen, climbing to over 30% from 15% in April. Some experts worry about “stagflation,” where growth stalls but inflation remains high.
Many companies have kept their earnings forecasts steady, despite uncertainty over Trump’s final trade policies. The president’s initial tariff plan in April caused market turmoil, but pausing many tariffs helped markets recover.
The White House is negotiating trade deals during this pause, with recent agreements including the United Kingdom and ongoing talks with China.
Recession concerns remain a hot topic. This year, “recession” was mentioned in about 150 earnings calls from S&P 500 companies—double the amount from last year. Companies warn tariffs could raise costs and force price increases, squeezing consumers who are already cautious.
However, a New York Federal Reserve survey shows consumers are less worried about inflation as some harsh tariff plans were rolled back.
Home Depot CEO Edward Decker said, “The worst concerns have passed. We moved from expecting a near certain recession in April to seeing markets fully recover and recession fears drop sharply.”
Read more:
