Business Roundtable is an association of CEOs of leading US companies with annual revenues of more than $5 trillion and some 10 million employees. In a survey they conducted, the results of which were released yesterday, CEOs were asked about their outlook for the next six months with regard to sales, capital spending, and employment. And their answers could only reflect the still negative sentiment that persists in the market.
Sales: 67% said it will decrease, 9& said it will not change and the remaining 24% it will increase.
Capital spending: 66% believe it will decrease while only 9% said spending will increase. The remaining 1/4 thinks there will be no change.
Employment: A worse 71% agree it will further decline while only 7% see employment rising.
Other results: GDP are believed to decline by 1.9% in 2009, a fall from the 0 growth first predicted. The CEO Economic Outlook Index, whose value can range from 50 to 150, resulted in a -5.0 from 4Q of ’08’s 16.5 Anything that reads below 50 is indicative of a contraction while 50 or up is a sign of an economic expansion.