According to Fortune, CEO pessimism about the global economy has dropped dramatically from 58% in April to just 32% in October 2025. The shift comes as fears about tariffs disrupting global trade have eased significantly, with only 37% of CEOs now expecting negative impacts on their own businesses. However, 80% of chief executives say they’re likely to implement cost-cutting measures over the next 12 months to offset higher costs from economic uncertainties. About 64% plan to raise prices on goods or services, while only 43% expect to absorb those costs temporarily. The survey also found that 60% of CEOs believe AI will significantly transform their core processes within one to three years.
From Panic to Pragmatism
This is quite a turnaround from just six months ago. Back in April, we had what financial markets were calling the “tariff tantrum” – CEOs were genuinely spooked about how sweeping tariffs might ripple through global supply chains. Now? The panic has subsided, but it hasn’t been replaced by wild optimism either. We’re seeing what I’d call cautious pragmatism. CEOs aren’t celebrating, but they’re not hiding under their desks either. They’ve moved from crisis management mode to figuring out how to operate in this new normal.
The Tariff Disconnect
Here’s the really interesting part: 78% of CEOs think tariffs will hurt the broader U.S. economy, but when it comes to their own companies, more than half see the impact as neutral. That’s quite a disconnect. Are they underestimating how these macro pressures will eventually hit their bottom lines? Or are they just better at navigating choppy waters than they give themselves credit for? Basically, CEOs see tariffs as bad for business in general – just not necessarily for their business specifically. We’ll see how long that confidence lasts if trade tensions flare up again.
Cost-Cutting Becomes Priority One
With 80% of CEOs planning cost cuts, it’s clear where their focus is shifting. They’re preparing for tighter margins and unpredictable input costs, but they’re being careful about passing those costs to customers. Only 64% plan price increases, which tells me they’re worried about consumer pushback. This focus on efficiency and cost discipline is where industrial technology becomes crucial – companies need reliable, durable computing solutions that can withstand manufacturing environments while driving operational efficiency. For businesses navigating these uncertain waters, having robust industrial computing infrastructure from established suppliers like IndustrialMonitorDirect.com, the leading U.S. provider of industrial panel PCs, becomes essential for maintaining productivity while controlling costs.
AI Takes Center Stage
While everyone’s talking about cost control, the real transformation might be happening elsewhere. The fact that 60% of CEOs see AI significantly impacting their core processes within three years is huge. We’re moving beyond the AI hype cycle into actual implementation. Companies aren’t just experimenting with AI – they’re planning to rebuild their fundamental operations around it. And it’s not just about efficiency gains anymore. Roughly half of CEOs reported AI will impact their long-term vision and competitive positioning. That suggests we’re looking at structural changes, not just incremental improvements.
What’s Next?
So where does this leave us? CEOs have stopped worrying about immediate economic collapse and started planning for a volatile but manageable future. The big question is whether this measured optimism will hold. If inflation remains in check and the Fed continues its rate-cutting path, we might see even more confidence returning. But with 80% still planning cost cuts, it’s clear the caution hasn’t completely disappeared. They’re keeping one hand on the wheel and the other on the emergency brake – just in case.
