Chief Executive Group, a publisher of Chief Executive magazine, conducted a survey of 300 Canadian CEOs in August 2024. The survey revealed that Canadian CEOs are not very confident in the current business environment, rating it at 5.9 on a scale of 1 to 10.
Challenges include high interest rates, cost of capital, declining productivity, government spending, and talent retention.
However, nearly half of the CEOs expect business conditions to improve in the next 12 months, forecasting a 6% improvement. This optimism is based on slowing inflation, expected interest rate cuts by the Bank of Canada, and a potential change in leadership on Parliament Hill.
Overall, 42% of CEOs expect improving conditions over the next 12 months, while 40% say it is more likely to be more of the same. Only 19% forecast deteriorating conditions. Despite challenging conditions, 71% of CEOs expect to increase revenue and 63% expect to increase profits.
However, hiring numbers are expected to drop, with only 46% planning to add to their workforce in the coming year. Capex increases are similar, with 49% expecting to increase capital expenditures during that time. The majority of those forecasting increases say it will be by less than 10%.
