{"id":1706513,"date":"2022-10-22T06:01:01","date_gmt":"2022-10-22T10:01:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1706513"},"modified":"2022-10-22T06:04:21","modified_gmt":"2022-10-22T10:04:21","slug":"what-americas-most-prominent-ceos-are-saying-about-recession","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/what-americas-most-prominent-ceos-are-saying-about-recession\/","title":{"rendered":"What America\u2019s Most Prominent CEOs Are Saying About Recession"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fwhat-americas-most-prominent-ceos-are-saying-about-recession%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1706513&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Despite the U.S. economy slipping into a technical <a href=\"https:\/\/www.theepochtimes.com\/t-recession\">recession<\/a> in the first half of 2022, <a href=\"https:\/\/www.theepochtimes.com\/t-ceos\">CEOs<\/a> believe that economic conditions could further deteriorate over the next six months, according to a recent\u00a0<a href=\"https:\/\/www.conference-board.org\/topics\/CEO-Confidence\">survey<\/a>\u00a0by a nonprofit business membership and research group organization.<\/p>\n<p>The\u00a0Conference Board survey found that 98 percent of chief executives are preparing for a recession in the next 12 to 18 months in the United States.<\/p>\n<p>Eighty-one percent of CEOs noted that general economic conditions have worsened from six months ago, and 74 percent anticipate that conditions will weaken over the next six months. More than half (52 percent) noted that conditions in their own industries were in worse condition to start the fourth quarter, while 54 percent expect short-term prospects to soften in their own industries during the next half-year.<\/p>\n<p>\u201cCEO confidence sunk further to start the fourth quarter and is at its lowest level since the Great Recession,\u201d Dana M. Peterson, chief economist of The Conference Board, stated in the report. \u201cCEOs\u2019 view of current conditions as well as their expectations deteriorated.\u201d<\/p>\n<p>While there is almost universal certainty that a recession will occur in 2023, the magnitude of the next economic downturn is most notable. According to the latest quarterly assessment, 85 percent of respondents think a brief and shallow U.S. recession with limited global spillover is the most likely scenario.<\/p>\n<p>The results were comparable to a recent KPMG survey of more than 1,300 CEOs this past summer (<a href=\"https:\/\/assets.kpmg\/content\/dam\/kpmg\/us\/pdf\/2022\/08\/ceo-outlook-report.pdf\">pdf<\/a>). Ninety-one percent of American CEOs are \u201cconvinced\u201d a recession is coming in the next 12 months.<\/p>\n<figure id=\"attachment_4781200\" class=\"wp-caption alignnone\"><a href=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2022\/10\/07\/GettyImages-1242720271-1200x800.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"lazy size-full wp-image-4781200\" src=\"https:\/\/www.theepochtimes.com\/assets\/themes\/eet\/images\/white.png\" data-src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/10\/GettyImages-1242720271-scaled.jpg\" alt=\"SpaceX founder Elon Musk\" width=\"3256\" height=\"2172\" \/><figcaption class=\"wp-caption-text\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-4781200\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/10\/GettyImages-1242720271-scaled.jpg\" alt=\"SpaceX founder Elon Musk\" width=\"3256\" height=\"2172\" \/><\/noscript><\/figcaption><\/a> SpaceX founder Elon Musk during a T-Mobile and SpaceX joint event in Boca Chica Beach, Texas, on Aug. 25, 2022. (Michael Gonzalez\/Getty Images)<\/figure>\n<p>But what are some of Corporate America\u2019s most well-known CEOs, such as Tesla\u2019s Elon Musk, or individuals saying about the next downturn?<\/p>\n<h2>\u2018Batten Down the Hatches\u2019<\/h2>\n<p>Following the release of Goldman Sachs\u2019s third-quarter earnings report, the investment bank\u2019s CEO, David Solomon,\u00a0<a href=\"https:\/\/www.reuters.com\/markets\/us\/goldman-ceo-says-reasonable-chance-us-recession-2023-2022-10-18\/\">told<\/a> Reuters that \u201cthere\u2019s a reasonable chance of a recession,\u201d although he \u201ccould still see a scenario with a soft landing.\u201d<\/p>\n<p>That caught the attention of Amazon founder Jeff Bezos, who shared Solomon\u2019s comments by tweet\u00a0and remarked that \u201cthe probabilities in this economy tell you to batten down the hatches.\u201d<\/p>\n<p>Bridgewater Associates founder\u00a0Ray Dalio <a href=\"https:\/\/www.bloomberg.com\/news\/videos\/2022-05-03\/battle-continues-between-the-bulls-and-bears-video\">told<\/a> Bloomberg at the Greenwich Economic Forum last week that the U.S. Federal Reserve\u2019s path to bringing down inflation could ignite a substantial and prolonged recession. He added that surging debt levels, historically low interest rates, political turmoil in Washington, and the Ukraine\u2013Russia conflict \u201care the perfect storm\u201d that \u201call affect each other.\u201d<\/p>\n<p>\u201cBecause of the size of the issues we are dealing with, it\u2019s not something we are used to because of its magnitude,\u201d he said. \u201cThey\u2019ve produced this giant lurch forward, and now will raise interest rates to the point that there\u2019s enough economic pain and financial market pain to deal with that.\u201d<\/p>\n<p>In a recent <a href=\"https:\/\/www.cnbc.com\/2022\/10\/10\/jpmorgan-jamie-dimon-warns-us-likely-to-tip-into-recession-soon.html\">interview<\/a> with CNBC, JPMorgan CEO Jamie Dimon explained that the plethora of \u201cserious\u201d headwinds could push the U.S. and global economies into recession within nine months.<\/p>\n<p>\u201cThese are very, very serious things which I think are likely to push the U.S. and the world\u2014I mean, Europe is already in recession\u2014and they\u2019re likely to put the U.S. in some kind of recession six to nine months from now,\u201d he said.<\/p>\n<p>But Cathie Wood, the CEO of investment firm Ark Invest, <a href=\"https:\/\/finance.yahoo.com\/news\/cathie-wood-were-in-a-recession-right-now-and-its-going-to-get-worse-201346927.html\">believes<\/a> that the current economic contraction \u201cwill be sustained.\u201d<\/p>\n<p>\u201cThe first two quarters of real GDP negative, to us, means we\u2019re in a recession. We believe this recession will be sustained,\u201d Wood recently told Yahoo Finance Live, adding that a contributing factor will be \u201ca serious inventory correction.\u201d<\/p>\n<p>At Tesla\u2019s annual shareholder meeting in August, Musk said he <a href=\"https:\/\/www.youtube.com\/watch?v=49e7LrxS3FQ\">anticipates<\/a> a \u201cmild recession\u201d that will last about 18 months.<\/p>\n<p>\u201cMaking macroeconomic prognostications is a recipe for disaster, but my guess is that we are past peak inflation and that we will have a recession,\u201d he stated. \u201cI\u2019m just guessing here, this is total speculation. But I would guess it\u2019s a mild recession for, I don\u2019t know, 18 months or something like that.\u201d<\/p>\n<p>In September, according to quotes obtained by <a href=\"https:\/\/www.cnbc.com\/2022\/09\/23\/google-ceo-pichai-fields-questions-on-cost-cuts-at-all-hands-meeting-.html\">CNBC<\/a>, Alphabet CEO Sundar Pichai told staff during an all-hands meeting in New York that the company would be preparing to adapt to the \u201ctoughest macroeconomic conditions\u201d in the past decade in preparation for a hard landing.<\/p>\n<p>\u201cThe fact that, you know, we are being a bit more responsible through one of the toughest macroeconomic conditions underway in the past decade, I think it\u2019s important that as a company we pull together to get through moments like this,\u201d he said. \u201cWe don\u2019t get to choose the macroeconomic conditions always.\u201d<\/p>\n<figure id=\"attachment_4714643\" class=\"wp-caption alignnone\"><a href=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2022\/09\/06\/Sundar-Pichai-GettyImages-1401984578-1200x800.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"lazy size-medium wp-image-4714643\" src=\"https:\/\/www.theepochtimes.com\/assets\/themes\/eet\/images\/white.png\" data-src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/10\/Sundar-Pichai-GettyImages-1401984578-600x400-1.jpg\" alt=\"Sundar Pichai\" width=\"600\" height=\"400\" \/><figcaption class=\"wp-caption-text\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-4714643\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/10\/Sundar-Pichai-GettyImages-1401984578-600x400-1.jpg\" alt=\"Sundar Pichai\" width=\"600\" height=\"400\" \/><\/noscript><\/figcaption><\/a> Alphabet CEO Sundar Pichai speaks at a panel at the CEO Summit of the Americas hosted by the U.S. Chamber of Commerce in Los Angeles, on June 9, 2022. (Anna Moneymaker\/Getty Images)<\/figure>\n<p>FedEx CEO Raj Subramaniam <a href=\"https:\/\/www.cnbc.com\/2022\/09\/15\/fedex-ceo-says-he-expects-the-economy-to-enter-a-worldwide-recession.html\">told<\/a>\u00a0CNBC\u2019s Jim Cramer during a Sept. 15 interview that the numbers suggest the economy is \u201cgoing into a worldwide recession.\u201d<\/p>\n<h2>What Do the Numbers Show?<\/h2>\n<p>The Federal Reserve Bank of Atlanta\u2019s GDPNow <a href=\"https:\/\/www.atlantafed.org\/cqer\/research\/gdpnow\">estimate<\/a> suggests that the U.S. economy expanded 2.9 percent in the third quarter, up from the model\u2019s 0.3 percent projection at the end of September.<\/p>\n<p>But that doesn\u2019t mean conditions have significantly improved. From Corporate America to economists to market analysts, the consensus is that another recession is on the horizon.<\/p>\n<p>Economists polled for Bankrate\u2019s <a href=\"https:\/\/www.bankrate.com\/banking\/federal-reserve\/economic-indicator-survey-recession-risks-october-2022\/\">Third-Quarter Economic Indicator<\/a> stated that there is a 65 percent chance of a contraction within the next 12\u201318 months, up from 33 percent in the first quarter.<\/p>\n<p>\u201cThis raises the risk that emergency savings could be needed by households in the coming months, much the same as it was needed or would have been useful during the early days of the pandemic, when 22 million jobs were lost in just two months\u2019 time,\u201d Mark Hamrick, Bankrate\u2019s senior economic analyst, said in the report. \u201cWe don\u2019t expect anything nearly so severe, but the economy is at some risk here.\u201d<\/p>\n<p>Over the past month, plenty of data have been pointing to a slowing economy.<\/p>\n<p>The Institute for Supply Management\u2019s (ISM) Manufacturing Purchasing Managers\u2019 Index (PMI), for example,\u00a0<a href=\"https:\/\/www.ismworld.org\/supply-management-news-and-reports\/reports\/ism-report-on-business\/\">weakened<\/a> to 50.9 in September, from 52.8 in August. In addition, the S&#038;P Global Composite and Services Purchasing Managers\u2019 Index (PMI) <a href=\"https:\/\/tradingeconomics.com\/united-states\/composite-pmi\">prints<\/a> were stuck in contraction territory. The Manufacturing PMI came in below 52.0.<\/p>\n<p>In August, durable goods orders fell 0.2 percent, while construction spending tumbled 0.7 percent. Industrial and manufacturing production each rose just 0.4 percent. <a href=\"https:\/\/www.census.gov\/retail\/index.html\">Retail sales<\/a> were flat at zero percent. Plus, a wide array of regional central bank indexes continued to contract, from the <a href=\"https:\/\/www.philadelphiafed.org\/surveys-and-data\/regional-economic-analysis\/manufacturing-business-outlook-survey\">Philadelphia Fed Bank\u2019s Manufacturing Index<\/a> (negative 8.7) to the <a href=\"https:\/\/www.newyorkfed.org\/survey\/empire\/empiresurvey_overview\">NY Empire State Manufacturing Index<\/a> (negative 9.1).<\/p>\n<p>These numbers have been reported as the annual inflation continues to be elevated at a hotter-than-expected 8.2 percent. The core inflation rate, which excludes the volatile energy and food industries, rose to 6.6 percent.<\/p>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-andrew-moran\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/10\/WEB_AndrewMoran.jpeg\" alt=\"Andrew Moran\" \/><\/a><\/p>\n<p>Follow<\/p>\n<\/div>\n<p>Andrew Moran has been writing about business, economics, and finance for more than a decade. He is the author of &#8220;The War on Cash.&#8221;<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Despite the U.S. economy slipping into a technical recession in the first half of 2022, CEOs believe that economic conditions could further deteriorate over the next six months, according to<\/p>\n","protected":false},"author":1,"featured_media":1706516,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[],"class_list":["post-1706513","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1706513","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1706513"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1706513\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1706516"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1706513"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1706513"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1706513"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}