Several Business Roundtable CEOs are anticipating stronger economic growth in 2014, according to recent media reports. Business Roundtable will release its First Quarter 2014 CEO Survey next Tuesday, giving us a better sense of expectations for capital investment, hiring, sales and GDP growth then.
For now this sample provides a good sense of how the economy might develop this year.
From Reuters, March 10, "GE CEO sees signs U.S. economy improving, says Europe stabilized":
(Reuters) - General Electric Co.'s (GE.N) chief said on Monday that there are signs the U.S. economy "is getting a little better each day," although he does not expect a return to the kind of growth seen in the 1990s anytime soon. Jeff Immelt, chief executive officer of the industrial conglomerate, also said Europe's economy has stabilized.
"While its expansion is anemic, the 'daily crises' have been eliminated," he said in his annual letter to shareholders. Immelt addressed the global economy in his letter, published Monday.
"Through the fog of the last five years, I would take the 2014 economy any day," he wrote. "The recovery is slow, but there are no major headwinds."
Immelt added a qualifier: "While governments are not addressing major challenges like immigration and regulatory reform, there is less disruption. And, we have the financial strength to make progress on our own."
GE's letter to shareholders is packaged online with a nicely done video illustrating the themes of the 2013 annual report, with "progress" being a company byword.
From Reuters, March 4, "Caterpillar CEO 'guardedly optimistic' about global economy":
Caterpillar Chairman and CEO Doug Oberhelman told ConExpo, the world's largest construction equipment show, in Las Vegas that he remained "guardedly optimistic ... very, very guardedly optimistic" about the global economic outlook.
Referring to the crisis in the Ukraine without mentioning Russia, he said it served as a reminder of the political risks, in the United States and abroad, that can still trip up the global economy.
"Most of the bad of the news in Europe is behind us," he said. "(But) we just saw a weekend event that can change things in a minute. The world's a fragile place and the world's economy is a fragile thing and it doesn't take much of a disruption to cause a fairly large ripple effect."
Forbes interviewed Honeywell CEO Dave Cote on February 25 in anticipation of its new conference, the Reinventing America Summit, set for the end of March in Chicago. From Honeywell CEO David Cote: "'U.S. Economy Is Definitely Improving, But It's Still Not Robust'":
Forbes: On a scale of 1-5, how optimistic are you that the American economy has really turned a corner?
Cote: Assuming 5 is the best score, I’d say a 3.5. The U.S. economy is definitely improving but it’s still not robust and could easily be “distracted”. And, we still haven’t addressed our debt.
What overlooked trends do you see that hold promise for the overall economy and productivity? What, on the other hand, are being over-hypes?
The overall benefits and increased tax implications of energy generation in the US is being over-looked somewhat. On the over-hyped side, the “internet of things” will happen, but just not as fast as some believe.
Cote goes deeper into the macroeconomic issues in this March 5 interview on CNBC, "Honeywell CEO: US in economic Olympics," citing the lack of action on the federal debt, trade, immigration reform and infrastructure.
Business Roundtable will release its First Quarter 2014 CEO Survey next Tuesday, so we'll be get a better sense of expectations for capital investment, hiring, sales and GDP growth then.