CEOs in the US are still cautious about the nation’s economy, according to a recent survey.
The Business Roundtable CEO Economic Outlook Index is a composite of CEO projections regarding sales, investment and hiring plans for the next six months. The index fell 6.6 points to 67.5 in the fourth quarter, its lowest amount in three years.
The long-term average for the index is 80.1 points. US CEOs are warning about the country’s short-term economic prospects, expecting a reduction in capital investments over the next six months.
140 CEOs were surveyed and 60% of these said they expect sales to increase over the next six months, marking a 63% decline compared to the previous quarter.
Business Roundtable is an association of CEOs of leading U.S. companies. “Capital spending as a percentage of the U.S. economy is at historically low levels,”Randall Stephenson, chairman of Business Roundtable said. “We’re hampering and we’re burdening capital investment in the U.S.”
