Daily News: June 21, 2012

America’s CEOs Soften Expectations on U.S. Economy

The results of Business Roundtable’s second quarter CEO Economic Outlook Survey for 2012 show a slight downturn in CEOs’ expectations for sales, capital spending and hiring for the next six months.

“CEOs envision somewhat slower overall economic growth for 2012 and have modestly lower expectations for sales, capital expenditures, and hiring as compared to last quarter,” said Jim McNerney, chairman of Business Roundtable and chairman, president and CEO of The Boeing Company. “While CEOs see continued economic expansion, the dip in quarterly sentiment reflects concern over increasingly persistent obstacles to a stronger recovery, including uncertainty over year-end U.S. Government tax and spending plans and a path to resolution of the euro-zone crises.”

In terms of the overall U.S. economy, Business Roundtable members estimate real GDP will grow by 2.1% in 2012, down slightly from last quarter’s estimate of 2.3%.

A composite index of CEO expectations for the next six months of sales, capital spending and employment trended downward to 89.1 in the second quarter of 2012, from 96.9 in the first quarter of 2012.

To read the full survey results, click here.