CEO Outlook Shows Slight Improvement
The nation's CEOs were a bit less negative about the economy in the second quarter, according to the Business Roundtable CEO Economic Outlook Index.
The index improved to a score of 18.5 in the second quarter from negative 5 in the first. Any score of less than 50 is considered consistent with economic contraction. The lowest score on the index is negative 50. The highest is 100.
According to the survey, CEOs expect the economy to shrink 2.1 percent this year.
In the second quarter, 49 percent of CEOs expected to reduce employment in the next six months, down from 71 percent in the first quarter. Another 6 percent expect to hire.
The executives were more optimistic about sales during the quarter. In the second quarter, 46 percent expected their own company's sales to decrease in the next six months, down from 67 percent in the first quarter, while 34 percent expected sales to rise, compared with 24 percent three months ago.
Capital spending is still not a priority. Only 12 percent expect increased investments in new equipment or buildings, up from 9 percent in the prior quarter.
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