CEOs Growing More Optimistic About Economy

Washington, DC, Dec. 10, 2009--There's likely to be more firing than hiring among America's largest companies in the next six months, according to the latest survey of their CEOs.

However, in general, CEOs appear to be growing more optimistic about the overall economy.

Nineteen percent of the CEOs expect to expand their work forces, while 31 percent predict a decrease in the next six months, according to a quarterly survey from the Business Roundtable released Tuesday. That's slightly better than the 13 percent who expected increased hiring three months earlier. At that time, 40 percent forecast cuts.

The business leaders also expect the overall U.S. economy to grow by 1.9 percent in 2010, less than 2.8 percent pace in the third quarter this year.

"These forecasts are in line with an anticipated slow and uneven recovery," said Ivan Seidenberg, CEO of Verizon Communications and chairman of the Roundtable.
He said sales and capital spending already are beginning to rise, but the employment picture won't benefit for some time.

In more positive news, the group's economic outlook index — a combination of expectations for spending, sales and hiring — rose to 71.5, from 44.9 in the third quarter. Numbers above 50 represent economic growth. It was the first time the index rose above 50 since the third quarter of 2008, just before the financial crisis struck with force.