CEO Confidence Index Plummets 22 Points Amid Tariff Concerns

CEO confidence among small and midsize businesses has sharply declined in Q1 2025, according to Vistage's latest CEO Confidence Index, which plummeted 22 points to 78.5. This downturn is attributed to rising concerns about tariffs and inflation, with 69% of CEOs indicating that tariff policy changes will negatively affect their businesses. Joe Galvin, Vistage's chief research officer, noted that this drop contrasts starkly with the optimism seen in the previous quarter, reflecting increasing economic challenges. Additionally, 41% of CEOs report worsening economic conditions over the past year, and 42% anticipate further declines in the year ahead. Despite the gloomy outlook, 45% of CEOs plan to increase hiring, although 14% are considering cuts, matching levels seen during past economic downturns. The survey indicates that many CEOs are also raising prices in response to margin pressures caused by tariffs and inflation.