Half of the responding high net worth CEOs indicated that the ongoing D.C. dysfunction over the 2014 budget and the debt ceiling is having a negative impact on their plans for hiring over the next six months.
A new survey finds “downward bias” among America’s high net worth CEOs regarding economic expectations for expansion over the next six months.
Business Roundtable’s third quarter 2013 CEO Economic Outlook Survey, released Wednesday, declined overall from 84.3 in the previous quarter to 79.1. High net worth CEO expectations for 2013 GDP growth matched the 2.2 percent annual rate reported in last quarter’s survey.
“CEO expectations for the next six months remain essentially the same,” said Jim McNerney, Chairman of Business Roundtable, and Chairman, president and CEO of the Boeing Company, in a statement. “Expectations for sales and capital investment both declined modestly in this survey. While U.S. business performance remains strong, as evidence by robust recovery in the automobile sector, business leaders still see headwinds preventing a more sustained, robust economy.”
This quarter’s survey contained an extra question concerning the effects of government gridlock on economic condition. Half of the responding high net worth CEOs indicated that the ongoing D.C. dysfunction over the 2014 budget and the debt ceiling is having a negative impact on their plans for hiring additional employees over the next six months.
Overall, the survey finds, hiring expectations were essentially flat, ticking up only slightly from the previous quarter due to fewer CEOs expecting a decrease in hiring.
Twenty-seven percent of high net worth respondents said they expect an increase in their company’s U.S. capital spending in the next six months, compared with 37 percent in the second quarter. Nearly two-thirds (62 percent) forecast no change, vs. 52 percent in the previous quarter.
Seven-in-ten (71 percent) of high net worth CEOs forecast an increase in their company’s sales in the next six months, vs.78 percent in the second quarter. Twenty-one percent said they expected no change in sales, compared with just 15 percent in the previous quarter.
The Business Roundtable is an association of high net worth chief executive officers of leading U.S. companies with $7.4 trillion in annual revenues and more than 16 million employees. BRT member companies comprise more than a third of the total value of the U.S. stock market and invest $158 billion annually in research and development – equal to 62 percent of U.S. private R&D spending. The companies pay more than $200 billion in dividends to shareholders and generate more than $540 billion in sales for small and medium-sized businesses annually.
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.