CEOs see US economy growing at modest pace
Thursday, 7 June 2007
WASHINGTON, June 6 (AFP): Leading US chief executives see steady growth in the US economy though 2007 underpinned by strong consumer spending, a survey showed yesterday.
The Business Roundtable's second quarter 2007 CEO Economic Outlook Survey shows that leaders are now assuming 2.6 per cent growth in 2007, slightly more than the consensus of private economists of 2.0 to 2.5 per cent.
The CEO economic outlook index, which indicates how the top executives believe the economy will perform in the six months ahead, dipped slightly to 81.9 from 84.9 in the first quarter. Anything over 50 suggests expansion.
"This quarter's survey shows that CEOs see favourable business conditions continuing," said Harold McGraw, chairman of Business Roundtable and of The McGraw-Hill Companies.
"While the survey does suggest that the US economy is settling into a somewhat softer consolidation phase, as long as consumers keep spending, the economy can continue to move ahead."
The survey found 66 per cent of CEOs projected higher sales ahead against only seven percent calling for a decline.
Thirty-four per cent expected higher capital spending while 14 per cent saw a decline.
Also, 42 per cent said they expected to hire more workers in the next six months while 25 per cent expected to cut positions.
The survey was completed between May 11 and 23 by 100 of the Roundtable's 160-member companies.
The Business Roundtable's second quarter 2007 CEO Economic Outlook Survey shows that leaders are now assuming 2.6 per cent growth in 2007, slightly more than the consensus of private economists of 2.0 to 2.5 per cent.
The CEO economic outlook index, which indicates how the top executives believe the economy will perform in the six months ahead, dipped slightly to 81.9 from 84.9 in the first quarter. Anything over 50 suggests expansion.
"This quarter's survey shows that CEOs see favourable business conditions continuing," said Harold McGraw, chairman of Business Roundtable and of The McGraw-Hill Companies.
"While the survey does suggest that the US economy is settling into a somewhat softer consolidation phase, as long as consumers keep spending, the economy can continue to move ahead."
The survey found 66 per cent of CEOs projected higher sales ahead against only seven percent calling for a decline.
Thirty-four per cent expected higher capital spending while 14 per cent saw a decline.
Also, 42 per cent said they expected to hire more workers in the next six months while 25 per cent expected to cut positions.
The survey was completed between May 11 and 23 by 100 of the Roundtable's 160-member companies.