CEOs Less Confident About U.S. Economy

U.S. chief executives are less optimistic about the economy , according to a study released today . The survey also shows that the difference of opinion about the 2014 budget and raising the debt ceiling in Washington make them cautious about hiring.
Business Roundtable said quarterly index , which measures the economic outlook CEO of the largest U.S. companies , fell to 79.1 in the third quarter from 84.3 in the previous quarter . Any reading above 50 indicates expansion.
The group said that 50 percent of CEOs surveyed said the impasse in Washington is having a negative impact on their plans to take on additional workers in the next six months .
Of the CEOs surveyed , 32 percent said they expect to increase hiring in the next six months . That has not changed from the previous quarter survey . Forty-four percent said that there would be no change in their hiring plans , up from 42 percent in the second quarter . And 24 percent said they expect to reduce hiring , down from 26 percent in the previous quarter .
"Although U.S. business remains strong, as evidenced by a strong recovery in the automotive sector , business leaders still see headwinds prevent more persistent, strong recovery , " said Jim McNerney , chairman of the Business Roundtable , said in a statement . McNerney also president , chairman and CEO of The Boeing Co. , the aircraft manufacturer .
CEOs surveyed said that they expect 2013 gross domestic product grew at an annual rate of 2.2 percent , matching expectations reported in the last quarterly survey .
A smaller percentage of CEOs expect an increase in sales. Seventy-one percent of respondents said they expect an increase in sales of the company in the next six months, compared to 78 percent in the last survey . Eight percent expect a decline in sales , an increase of 7 percent , while 21 percent expect no change , up from 15 percent in the previous quarter .
Business Roundtable is an association of over 200 CEOs . The survey results are based on 134 responses received between August 16 and September 6. The survey was conducted over 11 years ago .