CEOs have a less optimistic view of the economy in the next six months, according to the Business Roundtable’s Q1 2019 CEO Economic Outlook Index.
The index is a composite of CEO expectations for sales and plans for capital spending and hiring over the next six months.
The CEO Economic Outlook Index dropped to 95.2 in the first quarter, down 9.2 points from the previous quarter. However, it still remains higher than the historical average of 82.4. The decline reflects uncertainty about softening global growth.
The index also saw a drop in in CEO plans for hiring, which decreased 11.3 points to 80.4. Plans for capital investment fell 6.9 points to 91, while expectations for sales decreased 9.6 points to 114. Despite the decreases, the numbers in each of these categories are above historical averages.
Also, the CEOs project 2.5 percent growth for the year, down from their 2.7 percent estimate in the previous quarter.
“Business leaders’ plans for capital investment and hiring remain strong, a sign of continued confidence in the American economy amid easing global growth forecasts. To maintain U.S. economic progress going forward, Congress and the Administration should focus on policies to support a thriving economy and greater opportunity for all Americans, such as expanding free and fair trade, investing in infrastructure and workforce training, enacting a national innovation agenda and pursuing comprehensive immigration reform,” Jamie Dimon, chairman and CEO of JPMorgan Chase & Co. and chairman of the Business Roundtable, said.
Joshua Bolten, president and CEO of the Business Roundtable, said the economic outlook remains solid.
“Smart policies on tax reform and regulation have stimulated substantial hiring and business investment in the U.S. over recent months. As we encounter a potential softening of global economic conditions, it’s all the more important to advance policies that will promote American innovation and strengthen the U.S. economy for the long term,” Bolten said.
The CEOs cited the need for federal action to address consumer data privacy issues as 80 percent said it was “somewhat” or “very” important for Congress to enact a national consumer privacy law.
“As this survey makes clear, enacting a national consumer privacy law is a top priority for business leaders. Business Roundtable urges lawmakers on both sides of the aisle to make this a priority as well. Both consumers and businesses need a consistent set of data privacy rules that support innovation, safeguard consumer rights and reduce regulatory complexity,” Bolten added.