CEO confidence is rising for the third consecutive month, offering a more positive outlook for business conditions in the year ahead. According to Chief Executive’s December Confidence Index, CEOs rated their twelve-month forecast at 6.4 out of 10. This marks a slight increase from November and continues a steady climb that began in the fall.
The assessment of current business conditions also improved, reaching 6.0. This is the second-highest rating of the year and reflects gains throughout the fourth quarter. Leaders who are optimistic about conditions through 2026 point to clearer expectations on tariffs, easing inflation, lower interest rates, and planned business investments. Many also say the challenges of 2025 strengthened their ability to adapt.
While confidence is improving, outlooks remain mixed. Forty four percent of CEOs expect conditions to get better, down slightly from the previous month. Concerns include ongoing tariff uncertainty and softer consumer confidence. More CEOs now anticipate stable rather than improving conditions.
Expectations for company performance are trending upward. Seventy five percent expect higher revenue next year and sixty seven percent project increased profitability. Nearly half plan to add employees, and more than four in ten expect to increase capital spending.
