Eighty-six percent of global chief executive officers expect a recession in the next 12 months, according to a KMPG survey of 1,325 CEOs.

The CEOs are closely following the actions and statements of the U.S. Federal Reserve for clues on the direction of the economy and inflation.

Roughly half are considering reducing their workforce.

However, 58% think a global recession will be mild and short, and 71% are confident about the outlook for the global economy in the next three years, up from 60% who shared this view in early 2022. More than three-quarters, 76%, have already taken precautionary steps to prepare their company for an economic downturn.

C-suite executives’ “high level of confidence in their own companies and their longer-term prospects for growth are reassuring,” said KPMG Global Chairman and CEO Bill Thomas in a statement.

“The events of recent years have created real turbulence for the business community,” Thomas continued. “Our findings should provide some cautious optimism that, in contending with and overcoming these ordeals, executives are emerging more confident in their companies’ resilience and, hopefully, the markets will follow suit.”