WASHINGTON-A growing number of chief executives at large United States companies say they are more optimistic about the economy and plan to step up hiring. The brighter view from the boardroom comes after the best three months of job growth in two years.
The Business Roundtable said yesterday that a survey of its CEO members found that 42 per cent expect to hire over the next six months. That's up from 35 per cent three months ago. Nearly half plan to spend more on machinery and other capital equipment and more than 80 per cent expect their sales to rise.
The chief executives' overall outlook on the economy improved sharply from the end of last year. The group's outlook index jumped to 96.9 in the current January-March quarter. That's up from 77.9 in previous quarter and the highest reading since last spring.
The group is an association of the leaders of the 200 biggest US companies. The fourth quarter survey's finding that only 35 per cent of CEOs planned to add jobs was the lowest in five quarters. Yet the next three months saw the biggest job gains in two years.
The economy has added an average of 245,000 jobs per month since December. That has lowered the unemployment rate to 8.3 per cent, the lowest in three years. The improvement in the CEO survey suggests the job gains "will continue," said Jim McNerney, chairman of the Roundtable and CEO of Boeing Company.
The survey is based on 128 responses received between March 1-19.
Reuters