Economic confidence among chief executive officers at U.S. small and midsize businesses stumbled in the second quarter to the lowest level in nearly a decade on worsening views of current conditions and a dimmer outlook.
The Vistage CEO Confidence Index decreased 3.2 points in the second quarter to 88.4, the lowest level since the last three months of 2009, a report by Vistage Worldwide Inc. showed Thursday. Some 31% of respondents said economic conditions had recently improved, down from 64% a year ago, while only 13% expect an improvement in the next 12 months.
“Damage done to the economy from the tariffs, the slowdown in job growth as well as heightened economic uncertainty has been substantial,” said Richard Curtin, director of the University of Michigan’s consumer sentiment survey, who analyzed the data. “Despite these concerns, firms still held net favorable views that the Trump administration has helped their business.”
The Vistage survey contrasts with consecutive months of improvement in the National Federation of Independent Business’s small-business optimism index, which climbed in May to a seven-month high.
The latest survey from Vistage included responses from 1,463 CEOs over the June 3-10 period, so it was likely influenced by escalating trade tensions with China and Mexico. President Donald Trump on May 30 threatened tariffs on Mexican goods before saying on June 7 that he would drop the plans.
This article was provided by Bloomberg News.