CEO confidence tanks in Q2, but capex plans steady

CEO confidence tanked in the second quarter amid the Iran war, inflation and weaker economic conditions, according to The Conference Board.

The Conference Board's latest survey of 141 CEOs found the confidence score in the second quarter was 47, down from 59 in the first quarter. A reading below 50 means there are more negative than positive responses.

CEOs now expect economic conditions to weaken further over the next six months.

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What's notable in The Conference Board survey is that capital expenditures are sticking. Fewer CEOs expect to cut capex spending. In fact, 37% of CEOs expect to increase capital spending in the second quarter, up from 35% in the first.

Key items from The Conference Board survey include:

• Geopolitics and AI remained the top business risks with cybersecurity surging in the second quarter.
• 56% said that AI won't transform their industry and have a moderate impact.
• Nearly a quarter of CEOs felt that more than 50% of their workforce would need to be upskilled in two years.
• 15% of CEOs in the second quarter said economic conditions were better than six months ago, down from 39% in the first quarter.
• 47% of CEOs said economic conditions were worse, up from 8% last quarter.
• 24% of CEOs said economic conditions will improve over the next six months, down from 43% in the first quarter.
• 31% of CEOs expected to reduce their workforce, up from 27% in the first quarter.