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.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Biggest Airports in the World

The 5 Most Gang Infested Cities In America

The 34 Smartest Countries in the World

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

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!