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

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

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!