CEOs See Continued Uncertainty for U.S. Economy


 
Author: Amanda DeBard
Location: Washington, DC
Date: 2012-12-17

The results of Business Roundtable’s (BRT) fourth quarter 2012 CEO Economic Outlook Survey show CEOs’ expectations are largely unchanged, with a slight decline in expectations for sales and capital spending and a slight rise in expectations for hiring. This follows a significant drop in expectations in the third quarter of 2012.

“CEOs anticipate continued slow overall economic growth for the next six months and have slightly lower expectations for sales and capital expenditures”

“CEOs anticipate continued slow overall economic growth for the next six months and have slightly lower expectations for sales and capital expenditures,” said Jim McNerney, Chairman of Business Roundtable and Chairman, President and CEO of The Boeing Company. “The continued softness in quarterly sentiment reflects deep uncertainty about the future overall economic climate, realities of a slow-growing economy and frustration over Washington’s inability to resolve looming ‘fiscal cliff’ issues.”

In addition to fiscal policy issues, 35 percent of the CEOs reported that regulatory costs were of highest concern in the next six months, followed by labor and health care costs. This contrasts with the fourth quarter of 2011, when material costs were the CEOs' top concern. The CEO survey is now in its 11th year.

Survey Results

The survey’s key findings from this quarter and the third quarter of 2012 include:

 

 

 

 

 

 

 

 

 

2012 Q4

 

Quarterly %
Change
Increase

 

2012 Q3

 

Increase

 

No Change

 

Decrease

 

 

Increase

 

No Change

 

Decrease

How do you expect your
company’s sales to change
in the next six months?

 

58%

 

24%

 

17%

 

0%

 

58%

 

27%

 

15%

How do you expect your
company’s U.S. capital
spending to change in the
next six months?

 

30%

 

48%

 

23%

 

0%

 

30%

 

51%

 

19%

How do you expect your
company’s U.S.
employment to change in
the next six months?

 

29%

 

42%

 

29%

 

0%

 

29%

 

37%

 

34%

BRT CEOs expect 2.0 percent growth for 2013, an increase from last quarter’s estimate of 1.9 percent. CEO expectations for hiring over the next six months are roughly neutral, which represents a slight improvement from the expected decrease reported last quarter.

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