CEOs started the year feeling more optimistic about the current economic outlook, according to a survey from the Business Roundtable.
- The survey, taken before the SVB collapse, revealed that the first quarter of 2023 was a six-point increase from the last quarter, landing at 79.
- The results mark the third consecutive quarter at or below the long-run average of 84 and above the expansion or contraction threshold of 50, according to the Business Roundtable.
- The CEOs projected 1.4% U.S. GDP growth for the year, and 71% said they were either very or moderately concerned about the current trajectory of U.S. debt.
- The survey results showed plans for hiring increased four points to 65, plans for capital investment decreased one point to 67, and expectations for sales increased 13 points to 104.
Why it’s news
Many top CEOs started 2023 feeling slightly more optimistic about the economic outlook than before. The outlook suggests that the executives do not think America is diving into recession, but they remain worried about the rising debt.
“While the U.S. economy remains resilient, CEOs are cautiously approaching the next six months,” says Business Roundtable CEO Joshua Bolten. “Our members have been clear that the full faith and credit of the United States should not be put at risk and that we should take steps to address growing deficits and debt. We encourage the White House and Congress to find a bipartisan path forward that takes default off the table and begins to put our fiscal house in order.”
The results show that although many CEOs think that the economy isn’t going full force into recession, they are staying cautious and watching what will happen over the upcoming months watching what will happen as more risks, including rising debt, remain.
The Roundtable CEOs are urging policymakers to help strengthen the economy by reaching bipartisan agreement on a path forward to raise the debt ceiling and advancing pro-growth policies, according to the survey.
“Our members have been clear that the full faith and credit of the United States should not be put at risk and that we should take steps to address growing deficits and debt,” says the organization.