CEOs Predict Continued Economic Recovery
Survey Finds They Expect A Mild Increase In Economic Output
A new survey of CEOs reveals a slightly optimistic economic outlook over the next six months. Conducted by Business Roundtable, the survey found that CEOs expect a mild increase in economic output with additional improvements in hiring and sales.
"Overall, CEOs see the U.S. economy still on a slow road to recovery," said Jim McNerney, chairman of Business Roundtable as well as the CEO of Boeing. "Relative to economic conditions, business performance remains strong, but the U.S. government's unresolved long-term fiscal path and an uncertain political environment are key obstacles to more robust economic growth and hiring."
The survey's composite index of CEO expectations was 84.3 for the second quarter of 2013, an increase over 81.0 for the previous quarter and the second straight quarter it has improved. The current Index is greater than its long-term average level of 79.3.
Nearly a third of respondents said they expect their company to increase their U.S. hiring in the next six months, an improvement over previous surveys. While there was a decline in the number of CEOs predicting higher capital expenditures, there was also a 4% reduction of those predicting lower expenditures. "Overall," said the report, "CEO expectations for capital spending over the next six months increased relative to the previous quarter." For sales, there was a 6% hike in the number of CEOs predicting an increase in the next six months.