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World NewsEconomic outlook is strong for next 6 months, top CEOs say in...

Economic outlook is strong for next 6 months, top CEOs say in survey

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A buyer carries her purchases throughout Black Friday purchasing at Fashion Outlets of Chicago in Rosemont of Greater Chicago Area, Illinois, the United States, on Nov. 26, 2021.

Joel Lerner | Xinhua News Agency | Getty Images

Strong shopper demand sparked a wave of CEO optimism concerning the financial system over the next six months, the Business Roundtable stated Wednesday, because it revealed the outcomes of its most up-to-date survey.

But the lobbying group, whose members are CEOs of main American corporations, cautioned that the survey was accomplished earlier than the emergence of the brand new omicron Covid variant, and that the survey measured solely the executives’ plans for the next six months.

The Business Roundtable launched its fourth quarter CEO Economic Outlook Survey, revealing its headline index had risen to its highest stage in the 20-year historical past of the survey, hitting a worth of 124, which is up 10 factors from the third quarter. 

On top of that, CEOs reported their plans for hiring elevated 13 factors, plans for capital funding elevated 7 factors and expectations for gross sales elevated 9 factors. The group cited the discharge of monumental pent-up shopper demand as a driver of the optimism in company boardrooms.

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“This quarter’s survey reflects the encouraging signs we’re seeing with the economic rebound as consumers begin to resume travel and spending,” stated Business Roundtable Chairman Doug McMillon, the CEO of Walmart. “Continued progress in defeating the pandemic, including new variants, will be necessary to sustain strong growth into the second half of 2022.”

In their first estimate of 2022 U.S. GDP development, CEOs projected 3.9% development for the yr.

The Business Roundtable survey additionally requested CEOs for the associated fee pressures going through their corporations. Forty-eight p.c recognized labor prices because the top price strain, adopted by 20% figuring out provide chain disruption prices and 17% figuring out materials prices.

Business Roundtable CEO Josh Bolten spotlighted current laws on Capitol Hill as one of many causes for the executives’ financial optimism.

“The recent bipartisan Infrastructure Investment and Jobs Act, which directs much-needed resources to upgrade our nation’s physical infrastructure and broadband connectivity, is an important investment in the long-term health of the economy,” he stated. “As the economy reverts to a normal cadence, sound economic policy can help sustain strong growth over the long term.”

The survey was carried out between Nov. 3 and Nov. 22. The World Health Organization labeled omicron a “variant of concern” on Nov. 26.

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