CEOs Getting More Cautious About Growth in 2015
December 2, 2014 by Jon C. Ogg
The new report shows a moderate decline from the third quarter. Unfortunately, capital spending expectations declined the most in the outlook. When CEOs were asked to identify the two most significant factors holding back increased U.S. investment spending, those CEOs said that U.S. tax policy and regulatory issues are limiting U.S. investment spending.
CEOs said they expect 2015 gross domestic product growth of 2.4%, unchanged from their 2014 expectation. CEO expectations for investment fell by a sharp 5.8 points and sales declined by 1.3 points. The good news is that plans for hiring increased 3.6 points, following last quarter’s sharp 15.7 point decline.
ALSO READ: The Most and Least Tax-Friendly States for Business
The fourth-quarter 2014 survey was completed between October 22 and November 12, 2014. Responses were received from 129 member CEOs, 63% of the total Business Roundtable membership. Why this matters should be simple enough to understand. If a CEO is less confident, the message all the way down the company line is likely to be more guarded and cautious, and that doesn’t send the best message for being aggressive on new projects, hiring, business spending and other key issues.
AT&T’s Randall Stephenson, who is also Chairman of the Business Roundtable, said:
The economy ended the year essentially where it started – performing below its potential. Congress and the Administration should act now on tax extenders and Trade Promotion Authority to encourage additional business investment in the United States to help the economy grow and create more jobs.
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.