Exclusive: Top CEOs mark down economic outlook
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Top corporate leaders' boost of economic exuberance that followed the November elections has receded, according to a new survey of major-company CEOs obtained exclusively by Axios.
Why it matters: The data from the Business Roundtable is the latest sign that a volatile policy environment is dampening the outlook in Corporate America — and these survey results were mostly collected before last week's on-then-off tariffs and ensuing stock market volatility.
- President Trump met with BRT members — the CEOs of America's largest companies — yesterday afternoon.
By the numbers: The group's economic outlook index fell 7 points from its December release. At 84, the level is now about the same as it was in the first half of last year and in line with its historical average, implying steady overall growth ahead.
- The survey results dipped most for hiring expectations, with that sub-index falling 13 points to 54 — barely in expansion mode.
- The CEOs expect 2.5% GDP growth this year — in line with results over the last few years.
- Responses were collected between Feb. 19 and March 7, with 150 CEO's of major U.S. companies participating. President Trump implemented 25% tariffs on Canada and Mexico on March 4 before relaxing them two days later.
What they're saying: "The modest dip," said BRT CEO Joshua Bolten, "is tied to several factors, including signs of economic headwinds and an atmosphere of uncertainty in Washington."
- Bolten added that the Trump administration "can help turn the tide" by moving quickly on extending 2017 tax reforms, scaling back regulations, reforming permitting, and "avoiding the use of overly-broad, long-lasting tariffs."
- "The survey results signal that our members are cautious about the next six months, but also see opportunities to improve growth," Cisco CEO Chuck Robbins, the BRT's chair, said.
The bottom line: Before the latest wave of volatility and emergence of recession fears, America's most important corporate decision-makers were becoming more wary of the growth outlook.
