US CEOs of small to medium-sized companies report almost decades of low economic optimism amid trade tensions
President Trump's trade problems in Mexico and China hit Main Street as an optimism for the small to medium-sized US companies that are approaching the lowest decade
- The optimism of US small and medium-sized companies for chief executives in the economy fell 3.2 points to 88.4 for the second quarter of this year
- The Vista CEO Confidence Index discovered that this was the lowest decline in almost a decade, the last occurred during the last three months of 2009
- Of the 1,463 CEOs interviewed, 31% believed that economic conditions had improved, down from 64% last year and 13% expected improvements at the end of the year
- The decline is thought to be due to escalating trade tensions in Mexico and China, and has proposed rates for Mexican goods that have died
A report investigating the executives of American small and medium-sized companies discovered that confidence in the economy was almost at the lowest level.
The Vista CEO Confidence Index saw a fall of 3.2 points during the second quarter with a low of 88.4, according to Yahoo Finance.
The last time this low result was observed was during the last three months of 2009 – during the global banking crisis.
The crash started in September 2008 after the bankruptcy of the American bank Lehman Brothers. It was believed to have been caused by banks offering & # 39; high-risk loans & # 39; to people who would have difficulty paying them back.
In the Vistage Worldwide Inc. report 31% of respondents felt that economic conditions had improved, a decrease compared to 64% last year.
Only 13% expected an improvement in the following year.
Vistage Worldwide Inc. Headquarters (above) they founded shared their findings from the second quarter of 2019, which showed an almost decade low figure
The 1,463 CEOs interviewed in the report were spoken 3 – 10 in June amid growing trade problems with China and Mexico.
CEOs were interviewed between June 3 – 10, amid the escalating trade tensions between President Trump and the countries of China and Mexico
This also coincided with President Trump's impending tariffs on Mexican goods, which would later be abolished.
Richard Curtin, director of consumer confidence research at the University of Michigan, who analyzed the data, spoke with Yahoo.
& # 39; Damage to the economy of rates, the slowdown in job growth and increased economic uncertainty are significant & # 39 ;, Curtin said.
& # 39; Despite these concerns, companies still have a net favorable view that the Trump administration has helped their company. & # 39;
Another report, by the National Federation of Independent Companies, saw the optimism climb in May to a height of seven months – in contrast to the Vistage report.
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