CEO Economic Index Shows Decline in Optimism Among Top Executives amidst Economic Slowdown
According to the Business Roundtable’s Q3 2023 CEO Economic Outlook Survey, US corporate leaders are showing less optimism about the business outlook and employment due to a slowing economy. The survey creates a composite index of CEO plans for capital spending and employment over the next six months, as well as expectations for sales. The index for the current quarter dipped to a reading of 72, which is a modest four points lower than the second quarter, and it remains below its historic average of 84.
Business Roundtable CEO Joshua Bolten stated that with an economy that is slowing, CEOs are moderating their plans and expectations, particularly in employment. While two-thirds of the companies in the survey plan to increase hiring or maintain current levels, about a third anticipate scaling back. The “plans for hiring” subindex dropped by 11 points to a value of 45, while the “expectations for sales” subindex decreased by one point to a value of 103. On the other hand, the “plans for capital investment” subindex increased by one point to a value of 69.
Another notable finding in the report is that CEOs project the US gross domestic product (GDP) to grow by 2.1% this year. However, Business Roundtable Chair Mary Barra emphasizes the importance of policymakers in Washington working together with the business community to promote pro-growth policies for America. Barra states that Business Roundtable is committed to collaborating with Congress and the administration to build on the successes of recent bipartisan legislation in order to strengthen the economy.
The survey, which includes responses from 143 CEOs, was conducted between August 23 and September 8.
