Economic outlook is strong for next 6 months, top CEOs say in survey

Economic outlook is strong for next 6 months, top CEOs say in survey

A buyer carries her purchases throughout Black Friday purchasing at Trend Shops of Chicago in Rosemont of Higher Chicago Space, Illinois, america, on Nov. 26, 2021.

Joel Lerner | Xinhua Information Company | Getty Pictures

Robust client demand sparked a wave of CEO optimism concerning the economic system over the subsequent six months, the Enterprise Roundtable mentioned Wednesday, because it revealed the outcomes of its most up-to-date survey.

However the lobbying group, whose members are CEOs of main American corporations, cautioned that the survey was accomplished earlier than the emergence of the brand new omicron Covid variant, and that the survey measured solely the executives’ plans for the subsequent six months.

The Enterprise Roundtable launched its fourth quarter CEO Financial Outlook Survey, revealing its headline index had risen to its highest degree within the 20-year historical past of the survey, hitting a worth of 124, which is up 10 factors from the third quarter. 

On prime of that, CEOs reported their plans for hiring elevated 13 factors, plans for capital funding elevated 7 factors and expectations for gross sales elevated 9 factors. The group cited the discharge of huge pent-up client demand as a driver of the optimism in company boardrooms.

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“This quarter’s survey displays the encouraging indicators we’re seeing with the financial rebound as shoppers start to renew journey and spending,” mentioned Enterprise Roundtable Chairman Doug McMillon, the CEO of Walmart. “Continued progress in defeating the pandemic, together with new variants, shall be essential to maintain sturdy development into the second half of 2022.”

Of their first estimate of 2022 U.S. GDP development, CEOs projected 3.9% development for the yr.

The Enterprise Roundtable survey additionally requested CEOs for the fee pressures dealing with their corporations. Forty-eight % recognized labor prices as the highest value stress, adopted by 20% figuring out provide chain disruption prices and 17% figuring out materials prices.

Enterprise Roundtable CEO Josh Bolten spotlighted latest laws on Capitol Hill as one of many causes for the executives’ financial optimism.

“The latest bipartisan Infrastructure Funding and Jobs Act, which directs much-needed assets to improve our nation’s bodily infrastructure and broadband connectivity, is a crucial funding within the long-term well being of the economic system,” he mentioned. “Because the economic system reverts to a traditional cadence, sound financial coverage may also help maintain sturdy development over the long run.”

The survey was performed between Nov. 3 and Nov. 22. The World Well being Group labeled omicron a “variant of concern” on Nov. 26.

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