CEOs See Softening of Economic Conditions

Washington, DC, September 18, 2007--Leaders of America's top companies expect some softening of U.S. economic conditions in the next six months, according to Business Roundtable's third quarter 2007 CEO Economic Outlook Survey, released today.

The CEO Economic Outlook Index, which indicates how CEOs believe the economy will perform in the six months ahead, declined moderately to 77.4, a four and a half point dip from 81.9 in the second quarter of 2007.

"This quarter's survey shows that CEOs see a modest decline in economic conditions in the coming months," said Harold McGraw III, chairman of Business Roundtable and chairman, president and CEO of The McGraw-Hill Companies. "While the latest results continue a pattern of gradual decline in expectations since the beginning of the year, America's business leaders remain confident in the overall business environment."

When asked if recent credit market turmoil would impact business prospects, 60% of CEOs said they do not expect substantial effects; while nearly 40% reported that they do. Of the 40% of CEOs who do expect effects, roughly 62% believe that the main channel of impact will be through a weaker overall U.S. economy. Twenty-nine percent worry that it will cause their customers to retrench; 5% worry that it will increase their cost of capital and 5% worry that it will harm the global economy.

Business Roundtable, an association of chief executive officers of leading corporations, represents a combined workforce of more than 10 million employees and $4.5 trillion in annual revenues.

The survey's key findings for the next six months include: