CEO confidence has soared after President-elect Donald Trump’s re-election, with business leaders optimistic about lower taxes and regulations.
The Business Roundtable’s latest economic outlook index jumped 12 points, its highest level in over two years. Cisco CEO Chuck Robbins stated that top executives feel “energized” by Washington’s plans to protect tax reform, regulate wisely, and drive investment and job creation.
Industry experts predict higher sales (80% of CEOs expect increases) and increased capital spending (40% plan to raise spending). Only 38% plan to hire more workers, while 40% intend to keep their workforce steady. Small business owners are also optimistic, with an index measuring sentiment surging for the single largest one-month gain in its 40-year history.
However, economists warn that Trump’s plans for across-the-board tariffs could stoke inflation and raise costs for businesses and consumers. The Business Roundtable CEO Joshua Bolten urged the administration to avoid “overly-broad” tariffs.
The improved economic backdrop is also boosting confidence, with a gently cooling labor market and the Fed cutting interest rates. The global market has rallied, with the S&P 500 near all-time highs.
Source: https://www.axios.com/2024/12/11/ceo-sentiment-brt-trump-taxes