The Business Roundtable announced Wednesday that strong consumer demand has fueled a surge of optimism among CEOs about the economy for the next six-months, during its latest survey.
However, the lobbying group, which includes CEOs of large American businesses, warned that the survey was done before the new omicron Covid variety emerged and that it measured the plans of executives for the six months ahead.
Business Roundtable’s fourth quarter CEO Economic Outlook Survey revealed that its headline index has risen to the highest point in its 20-year history. It reached a value of 124, which is ten points higher than the previous quarter.
CEOs indicated that they had increased their plans for staffing by 13 percent, increased capital investments by 7 percentage points, and increased sales forecasts by 9 percent. According to the group, optimism was driven by the huge consumer demand that has been released.
Doug McMillon (CEO of Business Roundtable), said that the quarter’s survey “reflects the encouraging signs which we’re witnessing with the economic recovery as consumers resume to travel and spend.” Walmart. For strong growth to continue into 2022’s second half, we will need to make continued efforts in fighting the pandemic.
Chief executives projected an annual 3.9% increase in U.S. gross domestic product growth when they released their 2022 GDP estimates.
Business Roundtable also asked CEOs about the costs facing their businesses in a survey. 38 percent identified labor cost as their top concern, while 20% identified supply chain disruption costs. 17% also identified material costs.
Josh Bolten, CEO of Business Roundtable, highlighted recent legislation from Capitol Hill as one reason for executives’ optimism.
He stated that the recent bipartisan Infrastructure Investment and Jobs Act (which directs resources needed to upgrade the nation’s infrastructure and improve broadband connectivity) is an important investment for the economic long-term. Sound economic policies can support strong growth long-term, even if the economy returns to its normal pace.
This survey was done between Nov. 3 – Nov. 22. Omicron has been classified by the World Health Organization. a “variant of concern” on Nov. 26.