NEW YORK — Chief executives of major U.S. companies signaled caution on hiring as their confidence in the economy declined sharply in the second quarter of 2026, according to a survey released late last month.
The Conference Board Measure of CEO Confidence fell to 47 in the April-June period from 59 in the first quarter, dipping below the 50 level that separates positive from negative sentiment. The survey of 141 CEOs found that 47% described current economic conditions as worse than six months earlier, up sharply from the prior quarter.
CEOs also expressed pessimism about the near-term outlook. Nearly three in 10, or 31%, said they expect to reduce their workforce over the next six months, exceeding the 28% who plan to expand hiring. Forty percent anticipated no change in headcount.
"This quarter’s survey shows a notable decline in CEO sentiment," said Dana M. Peterson, chief economist at The Conference Board, in a statement accompanying the May 28 release.
The findings reflect broader concerns among business leaders amid ongoing economic uncertainties. The drop in confidence reversed gains seen earlier in the year, when some indicators had pointed to strengthening plans for sales and capital investment.
Hiring qualified workers remained relatively easier overall, though 53% of CEOs reported "some problems in some areas," up from 43% in the first quarter. Plans for wage increases showed signs of moderation, with many concentrating in the 3% to 4% range.
The survey comes as U.S. businesses navigate a range of factors, including trade tensions, geopolitical developments and the evolving impact of artificial intelligence on operations. Some executives have pointed to AI as a tool that could support productivity while influencing workforce needs.
Roger Ferguson Jr., vice chairman of The Business Council and chair emeritus of The Conference Board, noted the persistence of a "low-hire, low-fire" environment. The share of CEOs planning workforce expansions edged lower, while those anticipating cuts rose slightly.
Business Roundtable's separate Q1 2026 CEO Economic Outlook Index had shown some improvement in hiring plans earlier in the year, reaching a neutral reading of 50. However, the more recent Conference Board data indicates a shift toward caution.
The latest status of hiring intentions remains fluid as companies monitor economic data in the lead-up to the second half of 2026. No further details on specific industry breakdowns or individual company actions were provided in the survey summary.
