You choose, we deliver
If you are interested in this story, you might be interested in others from The Journal Gazette. Go to www.journalgazette.net/newsletter and pick the subjects you care most about. We'll deliver your customized daily news report at 3 a.m. Fort Wayne time, right to your email.

Economy

Advertisement

Fewer CEOs see hiring dip

But more fret over their finances as fiscal cliff nears

– A survey of U.S. chief executives shows the number of large companies that plan to add jobs or hire more workers is essentially unchanged versus three months ago, although fewer expect hiring to decrease.

The Business Roundtable said Wednesday that 29 percent of its member CEOs plan to increase hiring over the next six months, the same as in September when the group released its previous quarterly survey.

But only 29 percent expect hiring to decrease versus 34 percent in the previous report.

CEOs are slightly more pessimistic about their future sales, capital spending and the overall U.S. economy, amid uncertainty over the effect of budget cuts and tax increases that are set to take effect at the start of next year.

CEOs are worried about the pending U.S. budget changes, known as the fiscal cliff.

“The past quarter’s survey results reflect continued uncertainty of business leaders surrounding the ability of our political leaders to reach a principled compromise for resolving the fiscal cliff and related deficit and debt issues,” Jim McNerney, chairman of the Roundtable and CEO of The Boeing Co., said during a conference call with reporters.

“We will grow faster next year and the year after if we resolve this thing than we will if we don’t,” he added.

Earlier this month, all the Roundtable members delivered letters to the White House and to congressional leaders urging a compromise that includes more revenue, even if it means raising tax rates, and structural and benefit changes to social programs.

In the latest survey, 35 percent of the chief executives identified regulations as the greatest cost pressure concern that their companies face over the next six months, followed by labor and health care costs. A year ago, material costs topped the list of CEOs’ concerns.

About 58 percent of CEOs expect their companies’ sales to increase over the next six months, unchanged from the previous quarter. The share of executives expecting sales to decline edged higher to 17 percent from 15 percent.

The Business Roundtable represents the CEOs of the 200 largest U.S. corporations. Survey results are based on 143 responses received between Nov. 12 and Nov. 30.

Advertisement