Carmine Di Sibio, who runs consulting powerhouse EY Global, said on Thursday he does not see a recession as an imminent threat in the United States.
The EY chief joins a number of top executives who recently told CNBC that they don’t see a recession looming.
“We had a lot of conversations with our clients’ CFOs. Really, the United States economy is doing very well,” argued Di Sibio, who took over as EY chairman and CEO last month. He joined EY in 1985.
In a “Squawk Box” interview, Di Sibio said he would typically see a pause in innovation about six months before a recession. “Sometimes when a recession is coming, you start hearing that projects are put on hold. We’re not hearing that. There’s a lot of transformation going on.”
EY has more 200,000 clients in 150 countries, including about 80% of the companies in the Fortune Global 500.
Despite a strong U.S. consumer, a global economic slowdown, the ongoing U.S.-China trade conflict and key recession signals in the bond market have been causing volatility on Wall Street.
Falling Treasury yields paused Thursday, with most of the yield curve moving higher. However, the yield inversion that generally comes before recessions was still upside down, as the 10-year Treasury yield remained lower than that of the 2-year.
“Obviously, geopolitical events are slowing some things down,” acknowledged Di Sibio. “But there is a lot of confidence and there is a lot of capital.”
“I don’t see this major recession coming,” he added. “The environment is slightly worse than it was last year. But I would emphasize the word ‘slightly,’ and last year was a very strong economic year.”
“We have not seen signs in the U.S. of anything related to a slowdown, but we do know these things go in cycles,” said Johnson on “Mad Money.” “But right now, we’re firing on all cylinders and [the] consumer seems to be doing well.”