A recent survey conducted among US executives has unveiled a growing sense of pessimism regarding economic conditions for 2026.The findings, part of the Columbus CEO Survey, indicate that many leaders expect higher inflation rates and weaker profit margins in the coming year, marking a stark contrast to previous expectations.
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columbusceo.comThe survey, which included responses from C-suite executives across various sectors, revealed that nearly half of the participants foresee a decline in the global economy next year.Specifically, 74 percent anticipate a downturn in the US economy, while 30 percent predict a deterioration in local economic conditions.
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columbusceo.comThis shift in outlook is particularly alarming, given that only 3 percent of respondents expected a local economic decline in the previous year.
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columbusceo.comInflation has emerged as a primary concern for these executives.While inflation rates had previously peaked at 9.1 percent in mid-2022, the current sentiment reflects a belief that inflation will worsen again.Approximately 79 percent of survey respondents expect inflation to increase, a significant change from the previous year when 70 percent anticipated improvement.
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columbusceo.comEconomists predict that inflation will stabilize around 2.8 percent in 2026, still above the Federal Reserve's target of 2 percent.
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columbusceo.comThe survey also highlighted a decline in expectations regarding revenue and profits.Just over half of the executives expect revenues to rise in the coming year, but only 19 percent anticipate a profit increase of at least 5 percent.
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columbusceo.comThis decline in profit expectations is indicative of the broader economic challenges that businesses are facing, including rising costs and inflationary pressures.In addition to economic concerns, the survey explored the impact of artificial intelligence (AI) on business operations.Notably, 61 percent of respondents reported that their companies have already integrated AI into their processes, with another 27 percent considering its implementation.
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columbusceo.comThis trend reflects a growing recognition of AI's potential to enhance operational efficiency and reduce costs, even amid economic uncertainty.The Conference Board's Measure of CEO Confidence also corroborates these findings, showing a slight decline in CEO confidence in Q4 2025.The index fell to 48, indicating a more negative outlook among executives compared to previous quarters.
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conference-board.orgCEOs expressed concerns about general economic conditions and inflation, with 64 percent expecting a mild economic slowdown and increased inflationary pressures over the next 12 to 18 months.
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conference-board.orgDespite the cautious outlook, some executives remain optimistic about their industries.While 38 percent of CEOs expect conditions in their own industries to worsen, 33 percent anticipate improvement.
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conference-board.orgThis mixed sentiment reflects a complex economic landscape where challenges coexist with opportunities for growth.As businesses navigate these uncertain waters, the emphasis on cost management and strategic planning will be crucial.Executives are likely to prioritize investments in technology and innovation to enhance efficiency and adapt to changing market conditions.
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pwc.comThe focus on sustainability and climate-friendly investments is also expected to play a significant role in shaping future business strategies, as companies seek to balance profitability with environmental responsibility.
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pwc.comIn conclusion, the 2025 CEO survey paints a picture of an economic environment fraught with challenges, including rising inflation and declining profit expectations.As executives prepare for the year ahead, their ability to adapt to these conditions will be critical in determining their organizations' success in an increasingly complex landscape.
