U.S. CEO Sentiment at Three-Year High Is Good Omen for Economy

(Bloomberg) -- Chief executive officers of some of the largest U.S. companies are becoming even more sanguine about sales and spending, a good omen for the economy after a lackluster first-quarter expansion, according to a quarterly survey from the Business Roundtable released Tuesday.

Key Takeaways

Prospects for legislation that will reduce taxes and spur growth continue to hearten business leaders, who had boosted their confidence in the economy following President Donald Trump's November election victory. While companies see sales gaining and increasingly plan capital investments, a dwindling pool of skilled and experienced labor for hire may be restraining efforts to boost headcounts. The CEOs estimate the economy will grow 2 percent this year, down from 2.2 percent in the previous survey and slightly below the median forecast in a Bloomberg survey.

Other Details

• When asked how their company's capital spending will change in the next six months, 43 percent of respondents said increase, 52 percent said no change, 6 percent said decrease
• Historical average is 80 for main index
• Survey had responses from 148 CEOs and was conducted from May 3 to May 24; readings above 50 indicate economic expansion
• Washington-based Business Roundtable represents companies with almost 15 million employees, more than $6 trillion in annual revenue

To contact the reporter on this story: Patricia Laya in Washington at playa2@bloomberg.net.

To contact the editors responsible for this story: Brendan Murray at brmurray@bloomberg.net, Scott Lanman, Randall Woods