In the first quarter of 2025. year, the trust of the Director General in the US economy increased to the highest level in three years, which coincides with the second term of President Donald Trump. This increase in optimism among business leaders oppose growing consumer numbers on inflation and economic policies.
Why is it important
Recent data reveal a significant decline in consumer confidence in relation to the American economy. The conference board is Consumer consumer index® Decreased 5.4 points in January, after a 3.3 point drop in December, indicating growing consumer pessimism. This opinion is further underlined and Reuters / Ipsos survey Showing that 53 percent of Americans believe that the economy is on the wrong path, in January, in January.
Despite these consumer problems, executive directors have exhibited increased optimism about current and future business conditions, as evidenced by the Conference Committee. Measure of the Director General Trust ™which rose significantly in the first quarter of 2025. years. This divergence between the perspectives of the consumer and the Executive Director points out the contrasting prospects in the trajectory of the American economy.
What to know
Measure of CEO CEO CEO, conducted in cooperation with the Business Council, revealed a significant increase in optimism among the main executives in the first quarter of 2025. Years. Research, which included the 134 General Director between 27. January and 10. February, showed that 44. January, shown that 44. January 10th. February. The percentage of the Executive Director reported that economic conditions improved compared to six months ago, a significant increase of only 20 percent in the previous quarter.
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Meanwhile, only 11 percent of executive directors believe that economic conditions have worsened, a significant decline from 30 percent in Q4 2024. This shift indicates growing optimism among the main economic landscape.
The survey has also shown that 60 percent for the increase in salaries by 3 percent to 3.9 percent in the next 12 months, and 33 percent of the plan increase in capital spending in the next 12 months, which is an increase with 8 percent from the previous quarter.
Brian Mairs, Executive Director of Entrepreneurship Program and Innovation at the University of New Haven, said Newsweek General directors are optimistic because they focus on long-term business conditions, not immediate economic pressures. They expect Trump’s law to refund, reduce costs and create new growth opportunities. However, he warns that this optimism can be premature, because the uncertainty around Trump policies could still affect the economy in unpredictable ways.
Optimism among business leaders stands as opposed to consumer schedule. A Gallup survey In the middle of February 2025, 54 percent of Americans who do not authorize their handling of the economy showed in the middle of February 2025, and 53 percent do not approve its access to external trade. Inflation are also highlighted, with US Bureau for Statistics of Work Reporting on an increase of 3 percent of consumer prices in the past year, driven by rising costs in the basic basis such as car insurance, health care and airline tickets.
Marks noted that consumers feel the immediate effects of inflation, growing prices and potential costs that increase tariffs. Unlike the principal, which plan the future, consumers are focused on their daily costs, such as food and computer records. Uncertainty about Trump’s trading policies, especially in relation to tariffs indented goods, adds their care.
What do people say
Brian Mairs, Executive Director of Entrepreneurship Program and Innovation at the University of New Haven, said Newsweek: “Quite sincerely, it is too early to fully assess the situation. There are many (unknown as) Trump’s administrative policies, and everything could have a significant impact on the economy. I would be able to be a reflection of my bias, executive directors can be Too optimistic, while consumers can be too pessimistic, excessive discontics. “
Stephanie Guichard, senior economist, global indicators at the Conference Board, were said in the public statement: “Improving the trust of the Director General in the first quarter of 2025. It was significant based on the measures improved, as executive directors were more optimistic in current economic conditions, as well as in future economic conditions – in future economic conditions – in future economic conditions Conditions – and in concludes and assessments of current conditions are improved in their own industries. … In accordance with improved expected Outlook, there was a significant increase in the share of the General Manager who expect an increase in investment plans and a decline in shares that expect to reduce investment plans. “
Thomas Gift, Associate Professor of Political Science and CEO in American Politics at University College London, previously said Newsweek: “Americans come into reality that there is no silver bullet for inflation. While it has been overheated economically and provided the worst cost of living crisis, many inflation drivers are structural and cannot be reversed overnight. It is also difficult think about two policies that would be more inflationary of mass deportations and tariffs, and both Trump has made is a central piece of their platform. The idea that chooses to choose Trump suddenly dropped the price of eggs and milk was always unrealistic. Obviously, some voters are just beginning to recognize this difficult truth. “
What happens next
While the business leaders are willing to increase investment, the Blingering of consumers about inflation and economic policies could reduce the overall economic growth. The following key indicator of the Trump Economic Performance will be the report of the consumer price index (CPI), set to Freedom 12. March 2025. This report. This report will provide further insights into inflation trends and assist in the scale of the efficiency of current economic policies.
2025-02-21 19:54:00
