CEO Economic Outlook Shows Modest Improvement
June 15, 2016 | Business WireEstimated reading time: 2 minutes
CEO economic expectations for sales, capital expenditures and hiring have moved modestly upward, but GDP growth expectations have dipped, indicating the United States still has far to go to achieve sustained growth, according to the Business Roundtable second quarter 2016 CEO Economic Outlook Survey, released today.
The Business Roundtable CEO Economic Outlook Index — a composite of CEO projections for sales and plans for capital spending and hiring over the next six months — increased modestly from 69.4 in the first quarter of 2016 to 73.5 in the second quarter. The Index remains below its historical average of 79.8 but well above 50, indicating continued economic expansion.
CEO expectations for sales over the next six months improved by 0.8 points, while plans for capital expenditures moved up by 8.1 points, relative to last quarter. Expectations for hiring increased by 3.5 points from last quarter.
However, in their third estimate of real GDP growth for 2016, CEOs expect 2.1% growth, down from their 2.2% estimate in the first quarter of 2016.
“Increased plans for near-term sales, investment and hiring indicates modest economic improvement,” said Doug Oberhelman, Chairman & CEO of Caterpillar Inc., and Chairman of Business Roundtable. “But the CEO estimate for barely more than 2 percent GDP growth this year points to an economy that continues to perform below its potential. Unfortunately, it’s more of the same ‘one step forward, one step back’ we’ve been experiencing for a number of years now. We need sustained, healthy growth, which would be aided by enactment of pro-growth policies, such as ratifying the Trans-Pacific Partnership and updating our outdated tax system. Absent that, the U.S. economy will continue to be stuck in the slow lane.”
Second Quarter 2016 Business Roundtable CEO Economic Outlook Index
The Business Roundtable CEO Economic Outlook Index — a composite index of CEO plans for the next six months of sales, capital spending and employment—increased from 69.4 in the first quarter of 2016 to 73.5 in the second quarter of 2016. The long-term average of the Index is 79.8.
About the Business Roundtable CEO Economic Outlook Survey
The Business Roundtable CEO Economic Outlook Survey, conducted quarterly since the fourth quarter of 2002, provides a forward-looking view of the economy by Business Roundtable member CEOs.
The survey is designed to provide a picture of the future direction of the U.S. economy by asking CEOs to report their plans for their company’s sales, capex and employment in the next six months. The data are used to create the Business Roundtable CEO Economic Outlook Index and sub-indices for sales, capex and hiring expectations — diffusion indices that range between -50 and 150 — where readings at 50 or above indicate an economic expansion, and readings below 50 indicate an economic contraction. A diffusion index is defined as the percentage of respondents who report that a measure will increase, minus the percentage who report that the measure will decrease.
Suggested Items
SCHWEIZER Confirms Group Figures and Outlook for 2024
04/29/2024 | SCHWEIZERSCHWEIZER announces the publication of the annual report for 2023 and confirms the preliminary figures. The SCHWEIZER-Group (according to IFRS) generated sales of EUR 139.4 million in 2023 (previous year: EUR 131.0 million).
New Appointment Strengthens Ventec’s Value-Added Equipment Division
04/29/2024 | VentecVentec announces the appointment of Leigh Allinson as Commercial Director for its value-added PCB Equipment division 'Ventec Giga Solutions'.
NCAB Group Posts Interim Report Q1 2024
04/26/2024 | NCAB GroupNet sales decreased by 17% to SEK 950.6 million (1,146.4). Compared with the year-earlier period, sales were affected bylower prices and continued inventory adjustments by customers. In USD, net sales decreased 17%. For comparable units, net sales decreased 24% in both SEK and USD.
Rogers Corporation Reports Q1 2024 Results
04/26/2024 | Rogers CorporationNet sales of $213.4 million increased 4.3% versus the prior quarter resulting from higher sales in the AES and EMS business units. AES net sales increased by 4.1% primarily related to higher aerospace and defense (A&D), wireless infrastructure, industrial and renewable energy sales, partially offset by lower EV/HEV and ADAS sales. EMS net sales increased by 2.8% primarily from higher general industrial, A&D and EV/HEV sales, partially offset by seasonally lower portable electronics sales.
KYZEN Announces Exclusive Partnership with Manufacturers’ Representative Restronics Florida
04/25/2024 | KYZEN'KYZEN, the global leader in innovative environmentally responsible cleaning chemistries, proudly announces its strategic partnership with Manufacturers’ Representative Restronics Florida. Just like KYZEN’s commitment to continuously improving precision cleaning, Restronics Florida serves as a consultative OEM sales representative organization dedicated to educating customers to enhance their processes and productivity.