WASHINGTON – Chief executives for the largest U.S. companies are more optimistic about sales over the next six months and plan to add more workers.
The Business Roundtable said Wednesday that its April-June quarterly survey found 32 percent of its members expect to expand payrolls in the next six months. Thats up from 29 percent in the January-March survey. And 78 percent expect their sales to increase, up from 72 percent in the previous survey.
Consumers have kept spending this year despite an increase in Social Security taxes. Thats helped the economy grow at a modest pace.
Still, most of the CEOs dont expect growth to accelerate. They forecast growth of 2.2 percent this year, only slightly better than the 2.1 percent forecast in the first-quarter survey.
CEOs see the U.S. economy still on a slow road to recovery, said Jim McNerney, chief executive of Boeing and the chairman of the Business Roundtable.
The better sales outlook reflects modest growth in the United States and continued high growth in Asia and other emerging markets, McNerney said, offset by continuing recession in Europe.
Small business owners are also a bit more optimistic, according to a separate survey by the National Federation of Independent Business, released Tuesday. The agencys small business optimism index rose for the second straight month to 94.4. Thats the second-highest level since the recession began in December 2007. Greater confidence in future sales and economic growth drove the increase.
The Business Roundtable represents CEOs of the 200 largest U.S. corporations. The latest survey results are based on 141 responses received between May 13 and May 31.
The group surveys CEOs about sales, capital spending and hiring. The results are combined into an index, which gauges their outlook for the economy.
That index rose to 84.3 from 81 in March and only 65.6 in December. Any reading above 50 suggests expansion. The current reading is above its long-term average of 79.2. The survey has been conducted for 11 years.