Ending Soon! Save 33% on All Access

The Economic Outlook Among CEOs Drops to Lowest Level Since 2020 Plans for hiring, capital investment and sales expectations all declined in Q4 2022.

By Madeline Garfinkle Edited by Jessica Thomas

Opinions expressed by Entrepreneur contributors are their own.

Witthaya Prasongsin | Getty Images

As 2022 comes to a close, the pressures of inflation, rising labor costs and supply chain constraints have affected businesses across every industry.

Business Roundtable released its 2022 CEO Economic Outlook Survey on Monday and found the overall index fell to its lowest level since Q3 of 2020.

The survey is a composite index of CEOs' plans for spending, hiring and sales expectations for the next six months. The index was at 115 points in Q1 of 2022, well above the long-run average. However, CEOs' economic outlook declined over the rest of the year and finally dipped to 73 points in Q4.

One of the biggest declines in the index was hiring plans, which decreased by 17 points this quarter. Additionally, 49% of CEOs surveyed reported labor costs as their top financial pressure — which comes as no surprise given the steady rise in salaries due to a tight labor market and inflation.

Related: Highest Salary Hikes in 15 Years Fueled by Inflation and a Scarcity of Top Talent

Following hiring plans, expectations for sales decreased by eight points, and plans for capital investment decreased by seven points.

As for the best way to mitigate recession fears and economic collapse, Mary Barra, Business Roundtable chair and CEO of General Motors, pointed to government intervention.

"We urge U.S. policymakers to position America for the strongest economic recovery possible," she said in the report. "Sound policy action in the short term will yield long-term economic benefits and lay a solid foundation for our growth and competitiveness."

And Barra isn't alone in her call to action. Business Roundtable CEO Joshua Bolten joined Barra in stating that to strengthen the economy, Congress must implement pro-growth policies and address the debt ceiling "as soon as possible."

Related: 6 Key Tips for Leading Transparently in Economic Uncertainty

Madeline Garfinkle

News Writer

Madeline Garfinkle is a News Writer at Entrepreneur.com. She is a graduate from Syracuse University, and received an MFA from Columbia University. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

TikTok Reportedly Laid Off a 'Large Percentage' of Employees as the App's Fate in the U.S. Remains Unclear

Laid-off TikTok employees were notified Wednesday night through Thursday morning.

Business News

Four Seasons Orlando Responds to Viral TikTok: 'There's Something Here For All Ages'

The video has amassed over 45.4 million views on TikTok.

Business News

More People Are Exploring Entrepreneurship Because of This Unexpected Reason

More new business applications were filed in 2023 than in any other year so far.

Personal Finance

This Investment Bundle Includes a Trading Course and Stock Screener Tool for $150

Approach the stock market with an increased understanding.

Growing a Business

5 Strategies to Know As You Scale Your Business

Scaling a service-based company requires a comprehensive approach that goes beyond simply increasing revenue. It requires careful planning, strategic decision-making and a deep understanding of market dynamics.