Business Roundtable Releases First Quarter 2010 CEO Economic Outlook Survey
Increased sales, capital spending, employment outlooks drive rise in economic index.
The Business Roundtable CEO Economic Outlook Index is based on a survey — conducted quarterly since the fourth quarter of 2002 — of our member CEOs’ plans for hiring and capital spending, and their expectations for sales, over the next six months. Taking these factors together, the survey signals the direction of the U.S. economy.
Washington – The CEOs of America’s leading companies anticipate increased capital expenditures, sales and employment in the next six months, according to the results of Business Roundtable’s first quarter 2010 CEO Economic Outlook Survey.
“As the economy recovers and demand returns, we are seeing across-the-board increases in sales, resulting in increased capital expenditures, less job reduction and some employment stabilization,” said Ivan G. Seidenberg, Chairman of Business Roundtable and Chairman and CEO of Verizon Communications. “This survey shows each category of economic measurement moving in the right direction.”
The survey’s key findings from this quarter and last quarter include:
The CEOs employment outlook, in particular, has risen over the past year:
In terms of the overall U.S. economy, member CEOs estimate real GDP will grow by 2.3 percent in 2010.
The Business Roundtable CEO Economic Outlook Survey’s Index expanded to 88.9 in the first quarter of 2010, up from 71.5 in the fourth quarter of 2009, and 44.9 in the third quarter.
The Index is a composite diffusion index that combines member CEO projections for sales, capital spending and employment in the six months ahead. The Index is centered on 50, and results can range from negative 50 to positive 150. An Index reading of 50 or lower is consistent with overall economic contraction and a reading of 50 or higher is consistent with expansion.
Business Roundtable’s CEO Economic Outlook Survey, conducted quarterly since the fourth quarter of 2002, provides a forward-looking view of the economic outlook of Business Roundtable member CEOs.
The survey was completed between March 15 and March 30. The percentages in some categories may not equal 100 due to rounding.