86% of CEOS expect a recession within the next 12 months: survey

(The Hill) — 86% of global CEOs expect recession to hit next year, but most believe it will be mild and short, says a new report. KPMG research.

A poll found that 14% of CEOs see a recession as a pressing concern, up from 9% earlier this year. Pandemic fatigue, cited by 15% of his respondents, topped the list.

Despite growing fears of a recession, 71% expressed confidence in the prospects for global economic growth over the next few years, up 11 percentage points from the start of the year.

Nearly 85% of respondents said they are confident about their organization’s growth, especially over the next three years.

KPMG CEO Bill Thomas said: “It’s no surprise that economic conditions are top of mind for business leaders today, but it’s encouraging to see management’s high level of confidence in their companies and their long-term growth prospects. .”

Expectations of a recession are rising as the Federal Reserve and other central banks aggressively hike interest rates, raising fears that monetary tightening could push the economy into recession. .

The Fed has raised the benchmark interest rate by 75 basis points for the third time in a row.

After inflation reached a 40-year high earlier this year, Fed leaders promised further hikes to keep prices down, likely requiring higher unemployment to do so. I am warning you.

A new poll found that 73% of CEOs believe the recession will hinder their expected growth. About three-quarters (76%) say they are taking precautionary measures ahead of a recession, and 71% expect it to impact corporate earnings by up to 10%.

“The events of recent years have caused real disruption in the business community,” said Thomas. “Our findings should provide cautious optimism that management is beginning to feel more confident in their companies’ resilience as they face and overcome these challenges.

The survey was conducted with 1,325 CEOs between July 12th and August 24th. All of the respondent’s companies have annual sales above his $500 million.