WASHINGTON — CEO confidence has jumped to its highest level in three years, small business optimism remains strong, and manufacturing sentiment has rebounded into expansion territory, signaling renewed economic momentum under President Donald Trump’s administration.
The Conference Board’s Measure of CEO Confidence for Q1 2025 found that 44% of CEOs view economic conditions as better than six months ago, more than double the previous quarter’s figure. Additionally, 71% of CEOs plan to raise wages by 3% or more this year, up from 63% in Q4 2024.
Manufacturing activity, as measured by the ISM Purchasing Manager’s Index, returned to expansion in January for the first time in over two years. S&P Global’s manufacturing survey also surged in February, reaching its highest level since June 2022.
Since Trump’s election, nearly $3 trillion in private sector investments and trade commitments have been announced. These include a $500 billion AI infrastructure project with SoftBank, Oracle, and OpenAI; a $600 billion Saudi investment pledge; and Taiwan Semiconductor’s (TSMC) $100 billion expansion in the U.S. Other major commitments come from Apple, Honda, Eli Lilly, and Stellantis, among others.
Economic indicators and corporate investments suggest growing confidence in Trump’s pro-growth policies as businesses ramp up hiring and expansion.