CEOs’ confidence reaches a 17-year high

Corporate leaders are more upbeat about the U.S. economy than at any time in the past 17 years, according to a survey released Thursday.

The Conference Board measure of CEO confidence, in collaboration with the Business Council, jumped to 73 in the first quarter. That’s up from 34 a year ago during the height of the pandemic and business closures.

A reading above 50 reflects more positive than negative responses.

“CEOs across industries are planning for life after COVID-19,” Roger Ferguson, vice chairman of the Business Council and trustee of the Conference Board, said in a statement. “If downside risks are avoided, then this optimism will likely translate into higher wages, employment and capital spending over the next year.”

More than a third of chief executives surveyed said they expect that wages will rise by more than 3 percent over the next year. Nearly half said they expect to add jobs, while just 12 percent expect job reductions.

Forty-five percent expect to boost their capital spending budgets over the next year.

CEO confidence tends to be a leading indicator of the willingness to make deals, so the increase in optimism could fuel mergers and acquisitions activity.