CEOs Expect GDP to Grow by 2.3% in 2014

The Chief Executive Officers (CEOs) in the United States expect that 2014 gross domestic product (GDP) will increase by 2.3%, according to the Business Roundtable’s second quarter 2014 CEO Economic Outlook Survey. In the second quarter, the Business Roundtable CEO Economic Outlook Index, a composite of expectations for investment, sales and hiring, rose to 95.4 from 92.1 in the previous quarter.

U.S. Financial Hub: Wall Street

The 2.3% GDP growth rate is down from last quarter’s estimate of 2.4%, and represents below-normal growth compared to past economic recoveries, and is well below the economy’s potential. In addition, CEOs anticipate a decline in expectations for capital expenditures, and a moderate improvement in the outlook for sales and hiring over the next six months.

“CEO expectations for both investment and growth remain well below the potential of the U.S. economy and below what we should be experiencing at this stage of a recovery,” stated Randall Stephenson, chairman of Business Roundtable and chairman and CEO of AT&T Inc. (NYSE:T).

“Congress and the Administration must focus on policies that drive economic growth, including tax reform, immigration reform, trade expansion and long-term fiscal stability. The first step toward immediate growth should be passage of business tax extenders legislation that serves as a bridge to tax reform.”

Results of the survey reflect the impact of negative economic growth in the first quarter tied to uncertainty and lack of progress on key growth drivers such as tax extenders.

According to the survey, only 44% of CEOs expect to increase their companies’ U.S. capital investment, down from 48% last quarter. Also, 43% of CEOs expect to add U.S. employees, while 73% of executives anticipate sales will increase in the next six months.

Included in the survey a special question on short-term tax policy. The results show that 77% of CEOs said that passage of business tax extenders legislation, as a bridge to tax reform, would improve the investment climate for their company, customers and suppliers.

A total of 131 member CEOs responded to the survey, representing 64% of the total Business Roundtable membership. The survey is designed to capture CEO sentiment regarding the current state and future direction of the U.S. economy.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!