CEOs optimistic on sales, hiring for the next six months

The nation’s top executives raised their expectations for sales and hiring but lowered their expectations for capital investment over the next six months, a new report showed Tuesday.

The Business Roundtable’s survey of CEOs showed that a composite of projections for sales, plans for capital spending and hiring rose by 4.6 points to 74.2 in the fourth quarter compared with from 69.6 in the July-September period.

{mosads}“America’s business leaders are encouraged by President-elect [Donald] Trump’s pledge to boost economic growth,” said Doug Oberhelman, chairman and CEO of Caterpillar and chairman of BRT.

“We will work with the incoming administration and Congress to enact pro-growth policies such as modernizing the U.S. tax system, adopting a smarter approach to regulation, investing in infrastructure and focusing on the education and training people need to thrive in the 21st century economy.”

Expectations for hiring increased by a robust 14.8 points over last quarter.

However, CEO plans for capital expenditures fell by 5.4 points relative to last quarter.

The index remains below its historical average of 79.6 but well above 50, which signals stronger economic growth.

For the fifth straight year, CEOs said that regulations and the cost pressures facing their firms remain their top concern, the report showed.

“It’s telling that for the fifth year in a row CEOs name regulation as their greatest cost pressure,” Oberhelman said.

“We are encouraged by the promise of a renewed focus to usher in a smarter, regulatory environment that promotes job creation and economic growth and also protects safety, health and the environment.”

Business leaders expect the economy to grow at a 2 percent pace next year with the hiring outlook remaining positive.

Oberhelman said that Trump’s suggested pace of faster economic growth is possible if Congress adopts the right policies such as tax reform, infrastructure spending and reduces regulations.

But they said business leaders would assess the direction of major policy decisions such as tax reform and regulatory relief promised by Trump in their next report due out in March.