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CEOs Forecast Modest Economic Growth in 201701-02-17 | Economic News

CEOs Forecast Modest Economic Growth in 2017

Conclusion Based on Q4 Economic Outlook Survey

The fourth-quarter 2016 CEO Economic Outlook, conducted by the Business Roundtable, climbed 4.6 points, compared to the third quarter. The Q4 composite reading of 74.2 compares to the survey's historical average of 79.6.

Economic growth will continue in 2017, but at a slow pace, the Business Roundtable has concluded from its fourth-quarter 2016 CEO Economic Outlook, a survey of 142 chief executive officers at major companies throughout the nation.

The CEOs were asked whether their companies' sales expectations, capital spending and hiring plans would increase, decrease or remain unchanged over the next six months. The Business Roundtable then compared the fourth-quarter survey to an identical survey in the third quarter of 2016.

In the fourth-quarter version, the sales expectations component rose 4.5 points, while hiring plans jumped 14.8 points. However, fewer CEOs thought capital spending would rise, as this metric dropped 5.4 points.

From these fourth-quarter questions and answers, the Business Roundtable developed a composite score of 74.2, up from 69.6 in the third quarter. The historical average of the survey is 79.6.

The fourth-quarter survey was conducted between Oct. 26 and Nov. 16, 2016. All surveys are designed to provide a picture of the future direction of the U.S. economy, through the perceptions and opinions of chief executive officers.