The latest CEO confidence outlook from the Conference Board shows corporate leaders maintaining cautious optimism as the year draws to a close. Despite a slight dip in the group’s Measure of CEO Confidence to 48 in the fourth quarter from 49 in the previous quarter, most executives expect continued economic stability and limited risk of recession.
While national growth has slowed, the CEO confidence outlook highlights resilience among business leaders who are adapting to shifting conditions. Their steady expectations point to a measured but positive economic path forward—an encouraging sign for communities in the San Gabriel Valley that depend on consistent business investment and job stability.
CEO Confidence Outlook Predicts Mild Slowdown
The survey found that 37 percent of CEOs said U.S. economic conditions were worse than six months ago, up slightly from 34 percent in the third quarter. Still, optimism remains widespread: 64 percent anticipate only a mild slowdown over the next 12 to 18 months, and just 4 percent expect a recession.
This steady outlook supports a sense of cautious optimism for local economies. Business activity in the San Gabriel Valley—from logistics and retail to light manufacturing—continues to show endurance, even as inflation pressures linger. Local entrepreneurs and small business owners have adapted with leaner operations and strategic investments to sustain growth.
Hiring Outlook Reflects Renewed Stability
In another positive sign, only 29 percent of CEOs plan to reduce their workforce within the next year, down from 34 percent in the third quarter. That marks an improvement in hiring sentiment and suggests most firms are focused on retention and upskilling rather than layoffs.
For job seekers and workers across El Monte, Baldwin Park, and Temple City, the strengthened labor outlook means more stable employment prospects heading into 2026. Many local employers are emphasizing skill development and technology training to align with national trends in workplace modernization.
Artificial Intelligence Driving Future Optimism
The CEO confidence outlook also revealed strong enthusiasm for innovation. Eighty-one percent of surveyed executives believe artificial intelligence will transform at least half of all job roles within five years. Many see AI as a catalyst for productivity and new job creation rather than a threat to existing positions.
In the San Gabriel Valley, this optimism is reflected in local education and workforce initiatives. Community colleges and trade programs are collaborating with businesses to prepare students for careers in digital technology, logistics automation, and AI-assisted design. These efforts aim to ensure the region remains competitive as industries evolve.
Though CEO confidence softened slightly, the overall picture remains bright. Business leaders continue to plan, invest, and hire with optimism grounded in experience. For the Valley’s workers and entrepreneurs, the signal is clear: steady growth and innovation are still on the horizon.
For more information about the Conference Board’s quarterly CEO Confidence Outlook, visit https://www.conference-board.org/.
