CEOs See Economy Growing, But Slowly

A majority of CEOs responding to Business Roundtable’s quarterly economic outlook survey expect better sales, but their predicted GDP growth rate of 2.4 percent is “below-normal growth” compared to previous economic recoveries. The survey of 122 CEOs shows that 72 percent anticipate sales will increase in the next six months, but only 37 percent expect to add U.S. employees and less than half expect to increase their companies’ U.S. capital investment. “CEO expectations for overall economic growth are well below our economy’s potential,” Randall L. Stephenson, chairman of Business Roundtable and chairman and CEO of AT&T Inc., said in a statement.

The business leaders said they would hire more if Congress and the Administration collaborated on business tax reform, immigration reform, and progress on free trade agreements with the EU and Pacific nations. “[I]ncreased private-sector capital investment is the critical foundation for economic growth, and its key planks are fiscal stability, business tax reform, expanded trade, and immigration reform,” Stephenson said. “These issues have broad support, they are critical to driving job growth, and we urge Congress to act on them this year.”