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CEOs See Modest Growth Ahead: A News Roundup

Dec 4, 2013

News coverage of the just-released 4th Quarter CEO Economic Outlook Survey (available here)...

USA TODAY, "CEOs grow more bullish on economy":

Corporate CEOs are growing more optimistic about the economy, and a budget deal in Washington would help push next year's growth higher, according to a survey released by the Business Roundtable Wednesday.

Associated Press, "CEOs more optimistic about economy and hiring":

WASHINGTON (AP) — A survey of chief executives at the largest U.S. companies shows a growing number are slightly more optimistic about the economy's prospects for the next six months and expect to boost hiring.

Bloomberg, "CEO Expectations for U.S. Economy Climb on Sales, Hiring Outlook":

More U.S. chief executive officers project a pickup in sales, capital spending and hiring in the next six months, a survey showed...

“Our expectations are consistent with an economy that will continue along the path of steady, modest recovery into the first half of 2014,” said Jim McNerney, chairman of the Business Roundtable and CEO of Boeing Co. (BA) “These soundings are also consistent with an overall economy that, despite progress, is not yet performing at its full potential.”

Los Angeles Times, "Top CEOs more optimistic on economy, expect to spend and hire more"

McNerney said the economy continues to grow slowly and chief executives are watching Washington closely as Democrats and Republicans try to avoid another government shutdown next month.

"CEOs remain concerned about ongoing uncertainty stemming from the ongoing fiscal stalemate," he said.

The fight over spending, McNerney said, has prevented Congress from doing two things that he said would spur growth: overhauling the corporate tax code and passing immigration reform


Reuters, "U.S. CEOs expect 'modest' economic improvement in next six months":

(Reuters) - U.S. chief executives say the economy is modestly improving, with sales, capital spending and hiring all expected to rise in the next six months, a survey by the Business Roundtable showed on Wednesday.

 UPDATE (Dec. 5):

Wall Street Journal, "CEO Optimism at Highest Point in Nearly Two Years":

[If] Washington lawmakers can strike a budget deal, executives said they could be even more willing to spend.

“We have an economy that is on the cusp of growing at more than the 2-to-3% we’ve seen,” said Boeing Co. CEO Jim McNerney, who is chairman of the Business Roundtable. “Washington sorting themselves out would give businesses a more predictable environment to invest the cash on their balance sheets and hire people.”

The Business Journals, "What do CEOs want for Christmas? A federal budget agreement":

The joint committee led by Ryan and Murray has a Dec. 13 deadline for presenting Congress with a budget plan. They're not there yet -- and they may not get there -- but McNerney is "somewhat heartened" that the discussions so far "appear to be among adults."

That faint praise tells you all you need to know about what corporate America thinks about what's been going on in Washington. Rarely have businesses experienced more political uncertainty than they've experienced the past five years, McNerney said. Everything from tax rates to regulatory costs remain "very unpredictable at this stage." That makes CEOs hesitant to invest in long-term projects, he said.

BRT President John Engler, CNBC:

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