Spring 2025 – Spring 2026

The Year
of Stuck

Not recession. Not recovery. A long holding pattern in which companies protected margins, rationed conviction, and treated expansion as reversible.

Ed Cotton · Inverness Consulting
Definition

"Stuck" does not mean recession, collapse, or total paralysis. It means a business community caught in a holding pattern: still operating, still profitable in many cases, still investing in narrow areas—but unwilling to move with full conviction.

In practice, "stuck" means shorter time horizons, softer hiring, narrower capex, more contingency planning, more pricing defensiveness, and more money flowing only to the "can't avoid it" bucket—AI, core infrastructure, or urgent resilience work.

A year in which American business kept moving, but stopped making broad, confident commitments.

That pattern is visible in CEO surveys, small-business surveys, labor data, and company behavior. The strongest proof is that uncertainty kept showing up not just as a feeling, but as a brake on decisions.

The Numbers

Not single snapshots. Cumulative patterns — confidence eroding, lines crossing, drag compounding quarter after quarter.

Three Surveys, One Story
Confidence Eroded Everywhere at Once
High Neutral Low Q1 '25 Q2 '25 Summer '25 Q4 '25 Q1 '26 Mar '26 Q2 '25: mass drop Mar '26: Iran relapse Brief thaw Q1 '26
BRT CEO Outlook Index
Conference Board CEO Confidence
NFIB Uncertainty (inverted)
Sources: Business Roundtable, The Conference Board, NFIB / Reuters
Conference Board Q1 vs Q2 2025
How Fast Sentiment Collapsed
"Conditions worse than 6 months ago" 11% Q1 82% Q2 x7.5 "Expect conditions to worsen" 15% Q1 64% Q2
Source: The Conference Board CEO Confidence Survey
Conference Board
Capex Plans: The Lines Crossed, Then Slowly Uncrossed
40% 30% 20% 10% Q1'25 Q2'25 Q4'25 Q1'26 Lines crossed Q2
Increasing capex
Decreasing capex
Source: The Conference Board CEO Confidence Survey
NFIB Small Business
Uncertainty Never Really Left — It Just Changed Shape
100 90 80 70 Spring '25 Aug '25 Late '25 Jan '26 97 — +8 pts jump 91 — +7 pts jump
Source: NFIB Small Business Uncertainty Index / Reuters
Cumulative Impact
Each Quarter Layered On More Drag
Baseline Q2 '25 Confidence crash Summer '25 Uncertainty diffuses Q4 '25 Holding pattern sets Q1 '26 Brief thaw Mar '26 Iran relapse BRT -15, hiring -19 82% say worse NFIB unc. +8 3rd Q of net cuts Capex up 35% PMI 51.4, jobs down Net: still below baseline
Sources: Business Roundtable, Conference Board, NFIB, S&P Global / Reuters

How Stuck Evolved

Not a straight line. Shock, hold, slight release, fresh relapse.

Spring 2025
Policy Shock
Trade volatility and tariffs made planning dangerous. The BRT CEO Economic Outlook Index fell 15 points to 69—well below its historic average of 83. Executives marked down hiring and capex in real terms, not just rhetoric. BRT Q2 2025
Summer 2025
Diffuse Hesitation
Optimism could coexist with higher uncertainty, especially among smaller firms. Sales might be fine while expansion decisions still felt risky. NFIB showed decent optimism and simultaneously reported uncertainty clouding core decisions. Reuters Aug 2025
Late 2025
Holding Pattern
CEOs were no longer panicking, but they still weren't hiring with conviction. The BRT index improved to 80 but remained below historic average. Employment plans stayed soft even as sales and capex expectations improved slightly. BRT Q4 2025
Early 2026
Conditional Optimism
The first real sign that stuck might be loosening. 39% of CEOs said conditions were better, the share expecting capex increases rose to 35% from 22%, and concern about tariffs eased from ~40% to just over 20%. Conference Board Q1 2026
March 2026
Macro Relapse
War-driven oil shocks, renewed inflation pressure, and supply-chain disruption pushed firms back toward overhead cuts and caution. Business activity hit an 11-month low, private employment contracted, and the thaw proved fragile. Reuters Mar 2026

The Voices of Stuck

The numbers show the brake marks. The quotes show the wear on the driver.

"We don't know yet."
Jamie Dimon
CEO, JPMorgan Chase · Sept 2025
Warning that tariffs, immigration, geopolitics, and fiscal policy had not fully unfolded. The voice of an executive class living in delayed consequence.
"There's genuine uncertainty about where things go from here."
Edward Rosenfeld
CEO, Steven Madden · Feb 2026
Steven Madden withheld its 2026 earnings forecast entirely. When companies stop giving guidance, stuck has moved from feeling to formal corporate posture.
Tariffs put aircraft deliveries in "limbo" and left customers "struggling" to forecast their businesses.
Larry Culp
CEO, GE Aerospace
GE estimated tariffs would cost more than $500 million in 2025. The biggest uncertainty for aerospace since COVID.
Consumers are "value-focused and thoughtful about big-ticket purchases."
Corie Barry
CEO, Best Buy
Spending continues, but with caution. Best Buy noted 30–35% of its goods came from China. The split-screen year: business survives, but with drag.
"I just hope small businesses can hold on that long."
Small business owner
Fabricated metal products · NFIB Survey
Costs were rising, improvement was expected in 6–12 months, but survival was the immediate question. That is a holding pattern biting into action.

The Toil of Stuck

Not inactivity. The managerial labor of running a business when every decision had to be re-run through a fog machine.

DDI Global Leadership Forecast 2025
Leadership Under Strain
0%
of leaders
reported increased stress levels over the year
0%
of those
considered leaving leadership to protect their wellbeing
Source: DDI Global Leadership Forecast 2025
Conference Board · C-Suite Outlook 2026
Top CEO Worry Entering 2026
Uncertainty Global avg Talent Inflation 43% 29% 28% 25% % of U.S. CEOs ranking as top economic threat
Source: The Conference Board C-Suite Outlook 2026
The Labor Market
Low-Hire, Low-Fire: Not Collapse, Just Suspended Commitment
Hiring Flat / Cautious Stalled Contracting Spring '25 Summer – Fall '25 Late '25 Early '26 18K jobs/mo 3-mo avg private payrolls PMI jobs: 49.7 First contraction in 12+ months "A zero-employment growth equilibrium" — Jerome Powell
Sources: Reuters, S&P Global Flash PMI, Federal Reserve

How Business Learned to Live in Stuck

They didn't cope by becoming fearless. They coped by becoming narrower, harder, and more selective.

01
Selective Capex
Even in the cautious period, firms still spent on what felt unavoidable. Capex held up better than hiring, especially when tied to productivity or infrastructure.
02
Soft Labor Discipline
Instead of dramatic layoffs, many firms used slower hiring, flat headcount, and targeted cuts. By Q1 2026, 41% of CEOs expected no workforce change.
03
Price Pass-Through
When uncertainty arrived through costs, firms defended margins by raising prices. If you can't confidently grow, you protect the line you already have.
04
Balance-Sheet Caution
Private-credit funds capped withdrawals, banks tightened lending. When uncertainty lingers, finance stops pretending liquidity is infinite.
05
Concentration into AI
Executives kept funding AI and automation because it offered both a growth story and a cost story. But that itself created a split-screen economy: more money into systems, less into broad labor expansion. The "safe" strategic narrative absorbed the conviction that everything else lost.

The Proof Stack

Six data points. Enough to prove the case.

1

BRT Q2 2025

Hiring plans fell 19 points, capital-investment plans fell 15, uncertainty explicitly blamed for the decline.

Business Roundtable →
2

Conference Board Q2 2025

82% said conditions worsened; downward revisions to capital spending doubled from the prior quarter.

PR Newswire →
3

NFIB August 2025

Uncertainty index jumped 8 points; NFIB said it was clouding decisions about hiring, pricing, and plant and equipment investment.

Reuters →
4

BRT Q4 2025

Third straight quarter with more CEOs planning employment cuts than increases—the lowest three-quarter average since the Great Recession.

Business Roundtable →
5

NFIB January 2026

Uncertainty jumped 7 points, driven by doubt about whether it was a good time to expand—the operating-system level of stuck.

NFIB →
6

March 2026 PMI

Business activity hit an 11-month low, private employment contracted for the first time in over a year, firms cut overhead amid uncertainty.

Reuters →

The Unevenness of Consumer Stuck

Not one consumer mood. A split consumer economy.

The Pressured
Financed households, lower-income buyers, and risk-sensitive consumers are being pinned down by fuel costs, borrowing costs, and a labor market that feels stable without feeling expansive. They pull back first and hardest.
The Cautious Middle
The broad middle carries on more carefully than before. They still spend, but with longer consideration, more comparison, and less tolerance for ambiguity. Every big-ticket purchase has to pass a higher internal bar.
The Insulated
Consumers with higher income, cash buffers, or asset wealth retain room to act. They keep spending, traveling, and making bigger choices. The pressure exists around them, but hasn't reached them yet.

Rising gas prices are already hurting 55% of households. Mortgage rates have climbed to a six-month high. The labor market has slid into a "low-hire, low-fire" state. Those pressures don't land equally — they hit financed and lower-income households hardest, while consumers with more income or cash buffers keep moving.

Getting Unstuck

Each consumer segment requires a different strategic response. Here's how to move.

1
Map which stuck you're facing
The Pressured show up as abandoned carts, longer sales cycles, and price objections. The Cautious Middle show up as comparison shopping and deferred big-ticket decisions. The Insulated are still moving — but even they want more proof before committing. Diagnose which pattern dominates your category before writing a brief.
The evidence is already in the funnel. Search terms, abandoned carts, sales objections — they tell you which stuck you're selling into.
2
Make the offer easier to justify
For the Pressured, that means lower entry points and explicit value. For the Cautious Middle, it means showing proof earlier and stripping ambiguity. For the Insulated, it means reframing premium as durability — not aspiration. The old brief — "drive demand" — is too blunt. The better brief: what makes choosing us feel safer, smarter, or more necessary right now?
Tighten the value exchange. Reduce the interpretive labor. The customer's bar is higher — clear it for them.
3
Find the warm spots in the split
A stuck market is not evenly frozen — and the consumer split proves it. The Insulated still have active intent. Parts of the Cautious Middle still have to act — need-driven purchases, time-sensitive decisions, categories where delay costs more than commitment. Concentrate effort where movement is still possible rather than spraying reassurance at a frozen whole.
Segment by need state and risk tolerance — not demographics. Which buyers still have to act? Which channels carry intent?
4
Change the shape, not just the copy
The Pressured need a different product shape — simpler offers, clearer entry points, financing that acknowledges the squeeze. The Cautious Middle need less choice complexity and more reliability signals. If customers are more cautious, the company may need a different proposition, not a different tagline.
The test: does the strategy reduce hesitation at the point of choice?
5
Arm the marketer for the internal fight
Show which consumer segment still has motion. Show what the Pressured need that the company isn't offering. Show where the Insulated are still spending. Give the marketer something portable for the exec meeting and concrete for the operating team. Not a transformation fantasy. A sequence.
One segment to prioritize. One offer to simplify. One proof point to build. One message to retire.

Respond to the customer you have now — not the one you wish still existed.

Where Stuck Goes

Three live scenarios. Not fantasies—already visible in surveys, CEO language, and macro data.

Scenario 01
Selective Thaw
Optimistic
Stuck doesn't fully end, but it loosens in chosen areas. Big firms keep investing in AI, tech, industrial capacity, and selected M&A—while staying cautious elsewhere. The economy is not healed. It is triaged. Business moves, but only on the lit parts of the map.
Barclays raised its 2026 S&P 500 target to 7,650 and lifted EPS estimates to $321. Strategists expect ~14% Q1 2026 earnings growth. Conference Board CEOs remain worried but alert to opportunity.
Scenario 02
Permanent Contingency
Most Plausible
Stuck becomes the management style itself. More reversibility, more liquidity worship, more contingency planning. The culture of decision-making changes. "Stuck" stops being a phase and becomes a regime. Normal management turns into a treadmill with no off-ramp.
PMI fell to 51.4. Private employment contracted at 49.7. Private payrolls averaged only 18K/month. 43% of U.S. CEOs rank uncertainty as their top threat. 40% of stressed leaders considered leaving their roles.
Giants get optionality Everyone else gets weather
Scenario 03
Split-Screen Business
Sharpest
The biggest firms and the stock market move on while the rest of business stays pinned. Large firms with pricing power, AI leverage, and balance-sheet strength keep going. Smaller firms, weaker sectors, and labor-intensive operators remain trapped. A two-speed economy.
HSBC overweight U.S. stocks. Barclays turning more bullish on earnings resilience. Meanwhile, OECD says the Iran war erased a hoped-for growth upgrade and lifted inflation forecasts. Investors dialed back hopes for Fed easing.
The danger is not simply that business stays stuck. It is that different parts of business begin living in different futures at the same time.
A selective thaw for the strong.
Permanent contingency for the cautious.
A split-screen economy for everyone else.
The Year of Stuck — Spring 2025 to Spring 2026