A Business Roundtable survey found that CEOs are still generally optimistic about the economy, but less so than a few months ago.
Key Details
- While CEO outlook is still optimistic overall, numbers are noticeably lower than the same time last year and slightly lower than just a few months ago.
- Business Roundtable’s survey was conducted among 170 CEOs from August 12 to September 7, a time when inflation was beginning to cool.
- CEOs are still cautious about economic concerns, but they aren’t panicking yet.
- Business Roundtable CEO Josh Bolten asked Congress to be cautious of increasing inflationary pressures. The lobbying group opposed parts of Biden’s recent Inflation Reduction Act.
Why it’s news
While the recent survey shows CEOs still hold a fair amount of optimism, the recent inflation report released earlier this week could point to higher interest rates, potentially changing some CEOs’ outlook.
If executives begin to scramble, recession is more likely to affect a greater number of people as businesses cut jobs and reduce spending. While that doesn’t appear to be happening, businesses are slowing down on hiring and reducing activity.
Business Roundtable’s CEO Economic Outlook Index has fallen 12 points from last quarter and 40 points since the end of last year. Though the points are low, they remain above recession levels.
Surprising statistics
The survey revealed that numbers have slightly decreased from last quarter. . .
- 47% say their company’s employment will grow. In the previous quarter 50% said the same.
- 65% anticipate increased sales compared to 72% from last quarter.
- 43% intend to increase capital spending, as opposed to 47% last quarter.
