In a recent report published by Business Insider on June 18, 2025, the results of the Business Roundtable CEO Economic Outlook Index revealed a significant decline in optimism about the U.S. economy, reaching its lowest level since the COVID-19 pandemic in 2020.
The index dropped by 15 points in the second quarter of the year, landing at 69 points, which is well below its historical average of 83. This decline was driven by notable reductions in capital spending plans, sales expectations, and hiring intentions. Data showed that 41% of CEOs expect to reduce their workforce in the next six months, compared to 29% in the previous quarter. Meanwhile, the percentage of those expecting to increase hiring fell from 33% to 26%.
The drop in confidence is largely attributed to widespread uncertainty, especially related to international trade policies. Joshua Bolten, CEO of Business Roundtable, explained that the unstable trade environment caused by tariffs is making long-term planning difficult. He added that tax reform alone is not sufficient — the U.S. administration must move quickly to secure trade agreements that eliminate harmful tariffs and open markets.
For his part, Chuck Robbins, CEO of Cisco and Chair of the Business Roundtable, said the figures reflect a more cautious approach from CEOs going into the second half of 2025. The report also noted that threats from President Donald Trump regarding new tariffs have caused sharp stock market fluctuations, forced companies to adjust their supply chains, and impacted retail, food service, and housing market outlooks.
Despite the gloomy sentiment, the index has not yet reached crisis levels seen during the second quarter of 2020, when it plummeted to 34.3 points. However, it clearly indicates that businesses are entering a period of heightened caution and concern about the near future.
Source:
https://www.businessinsider.com/business-roundtable-ceo-economic-outlook-index-5-year-low-2025-6
