Presented by Bridge Business Credit

CEOs entered August feeling better about current business conditions than they have at any point since last December, with resilient customer demand helping offset persistent concerns about inflation, labor shortages and geopolitical uncertainty.

Asked to explain what is shaping their expectations for the year ahead, those CEOs polled most frequently pointed to demand, sales or backlog. Forty-four percent cited those factors as reasons for their 12-month outlook. 

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In Chief Executive’s Magazine’s August CEO Confidence Index, CEOs rated current business conditions a 6.0 out of 10, moving the Index back into “good” territory for the first time in eight months. 

The survey also found growing optimism for the year ahead, with nearly two-thirds expecting the U.S. economy to expand over the next six months and three-quarters forecasting revenue growth for their own companies in 2026. 

Some key takeaways from the numbers include the following:

• Investment is back on the agenda. The share of CEOs planning to increase CapEx jumped 12 percentage points from the month before to 51 percent, signaling greater confidence in future growth.
• Demand remains the bright spot. Of those polled 44 percent cited demand, sales or backlog as the biggest factor supporting their outlook, outweighing concerns about inflation and costs.
• Execution trumps the economy. More than half said organizational execution and alignment will be the biggest driver of achieving company goals this year.
• Growth expectations remain solid. 75 percent expect higher revenue in 2026, while 69 percent forecast profit growth.
• Hiring still lags. While optimism is improving, fewer than half of CEOs expect to increase headcount, reflecting continued caution around labor costs and productivity.

Rising costs and margin pressure remain a major concern, considered by 44 percent of CEOs as one of the biggest challenges to achieving their goals this year. But respondents do not expect inflation to accelerate further: Their average 12-month headline CPI forecast held at 3.6 percent. 

Some CEOs expect inflationary pressure to ease as geopolitical disruption subsides. One respondent expects “the Iran war to be over, affordability for the general consumer to improve, inflation to be more in control and pent-up demand to come to fruition in a number of sectors.” 

One CEO surveyed explained that “Like many business leaders, I am navigating the uncertainty.” The CEO surveyed echoed what we heard from many others, adding, “My focus remains on supporting our people, strengthening customer relationships and preparing the business to take advantage of opportunities when the market improves.” 

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