By Kristina Peterson
Texas Insider Report: WASHINGTON D.C. Top business executives are less confident about the U.S. economic outlook and their ability to hire new workers than in previous quarters this year according to a survey released Thursday by Business Roundtable. Only 36 of chief executives thought their companys U.S. employment would increase in the next six months and 24 thought it would decrease according to the survey of 140 chief executives.
By contrast in the second-quarter poll 51 of executives thought their companys U.S. employment would increase and only 11 thought it would decrease.
Business Roundtable is an association of chief executives leading U.S. companies with a total of more than 14 million employees according to the group. The surevey was conducted by Business Roundtable between Aug. 29 and Sept. 16.
The CEOs were also less confident that their companies sales would increase over the next six months. Only 65 predicted an increase in Thursdays poll while 87 had expected an increase in the second quarter.
Similarly only 32 of business chiefs expected to see their companys capital spending increase in the next six months compared to 61 in the second-quarter poll.
The findings of this survey show declines in each category of economic measurement" said Jim McNerney Business Roundtable chairman and the president and chief executive of Boeing Co.
The combined CEO Economic Outlook index which incorporates all of the survey data dropped to 77.6 in the third quarter survey down from 109.9 last quarter. Any reading above 50 still shows expectations that the economy will expand.
McNerney said high oil prices uncertainty over the sovereign-debt crisis in Europe this summers Congressional debate over raising the countrys borrowing limit and rating firm Standard & Poors decision to downgrade U.S. debt all contributed to the uncertain business climate.
This past quarter was a challenging one for our economy" he said.
Chief executives anxiety could ease if European policy makers find a resolution to the continents debt woes and the Congressional panel that must trim the federal budget deficit by $1.2 trillion over 10 years succeeds in getting its work done" McNerney said.
While we see strong business fundamentals in America still the quarterly survey reflects increased uncertainty among CEOs concerning the economic climate and business environment."The CEOs polled thought real gross domestic product will grow by 1.8 in 2011 down from the 2.8 projected in the second quarter.
The combined CEO Economic Outlook index which incorporates all of the survey data dropped to 77.6 in the third quarter survey down from 109.9 last quarter. Any reading above 50 still shows expectations that the economy will expand.
McNerney said high oil prices uncertainty over the sovereign-debt crisis in Europe this summers Congressional debate over raising the countrys borrowing limit and rating firm Standard & Poors decision to downgrade U.S. debt all contributed to the uncertain business climate.
This past quarter was a challenging one for our economy" he said.
Chief executives anxiety could ease if European policy makers find a resolution to the continents debt woes and the Congressional panel that must trim the federal budget deficit by $1.2 trillion over 10 years succeeds in getting its work done" McNerney said.
