CEOs feeling more upbeat
The CEO Economic Outlook Index was 79.5 in the fourth quarter, up from 77.4 in the third quarter, which was the lowest since the third quarter of 2003, according to the Business Roundtable. Numbers above 50 point to growth in the economy.
Rising exports and growth for U.S. companies operating abroad and continued strength in consumer spending are keeping CEOs confident, despite turmoil in financial markets, elevated energy costs and a housing slump, says Harold McGraw III, chairman of Business Roundtable and CEO of the McGraw-Hill Cos.
CEOs are seeing a "steady as she goes" economy, he says.
"People keep waiting for shoes to drop and you do have a housing recession and you do want to watch if there could be any spillover effect," McGraw told reporters in a conference call. "CEOs are getting a little bit more comfortable that we are slowing down a little bit as an economy (but) that there aren't huge dark clouds out there. But again, we have to pay attention to the consumer."
The survey of 105 of the group's members, which include CEOs from top U.S. companies, was conducted Nov. 5-20.
The percentage of CEOs who said they expected their company's sales would rise in the next six months increased to 70 percent in the fourth quarter from 68 percent in the third quarter.
The job outlook also improved a bit.
While one-third said they expected to increase their staffs, unchanged from the third quarter, 22 percent said they planned to cut workers, down from 26 percent in the third quarter and the lowest since the beginning of the year. Investment plans were largely unchanged.
Energy prices climbed as a top concern of CEOs when asked what were the biggest cost pressures facing their companies, according to Business Roundtable. Nearly one-third of the CEOs cited energy as the top cost pressure, double the proportion seen a year earlier and matching the percentage who cited health care as the main cost concern, the Business Roundtable said. Health care costs last year garnered more than half of the votes.
The small improvement in the Business Roundtable outlook index runs counter to what is being seen in other surveys of business leaders. The National Federation of Independent Business' survey of small business owners showed less optimism in October than in September, while a weekly poll of business leaders conducted by Moody's Economy.com has also shown a decline in confidence in the economy.
WBJ Web Partners
Most Recent
Most Recent
0 Comments