Conference Board survey finds 93% of CEOs are preparing for a recession in the next 12 to 18 months

Per CNBC

A recent survey by The Conference Board revealed that the majority of CEOs were already preparing for a recession, with only less than 10% of them doing otherwise. It was noted that the CEO's preparations were for a recession that could happen over the next 12 to 18 months.

Dana M. Peterson, The Conference Board's CEO Dana M. Peterson, gave a statement regarding how the confidence of CEOs started to go down in the second quarter of the year.

Peterson: “After improving sharply to start the year, CEO confidence ticked down slightly in Q2 and remains firmly in negative territory,”

The chief economist noted that 55% of CEOs said that general economic conditions were worse compared to how they were six months ago. It was noted that 56% of CEOs said that they expect general economic conditions to also spiral downward in the next six months.

40% of CEOs reportedly expect worse conditions for the industry that they are in. Roger W. Ferguson Jr., Vice Chairman of The Business Council and a company Trustee, gave a statement regarding how most things stayed the same for CEOs in the second quarter.

Ferguson: “Even as dramatic bank failures stoked fears of systemic breakdown, CEOs remain nearly unanimous in expecting a short and shallow US recession ahead, with just 6% preparing for a deeper downturn with major global spillovers."

In February, it was noted that CEOs with MBAs reportedly just cut wages instead of improving sales and productivity. This came from a study by NBER which revealed that MBA-holding CEOs were more likely to just cut wages and revenue share towards labor.

In other news, it was revealed toward the end of April that 41 women are now running more S&P 500 companies than the number of CEOs named John. This was a result of a study by Stanford University economics doctoral student Lauren Harris.

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