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
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