Corporate leaders expect the US economy to gather steam over the course of 2004 as their companies boost hiring and capital expenditures, a survey showed Wednesday.
The Business Roundtable's Economic Outlook Index, based on the survey of top US executives, rose to 96.5 in June from 94 in March.
On average, the CEOs expect real economic growth to be 3.7 per cent in 2004, in line with the projection made in March. Some 38 per cent of CEOs projected job increases in the next six months -- compared with 33 per cent in December who expected higher employment.
"America's CEOs believe that the US economy will continue to strengthen steadily over the next six months," said Hank McKinnell, chairman of Business Roundtable and chairman and CEO of Pfizer.
"Along with a continued rise in capital spending and a high level of sales, CEOs expect steady employment gains over the next six months. Our economy appears to have reached a self-sustaining phase of expansion."
Business Roundtable is an association of chief executive officers of US corporations with a combined workforce of more than 10 million and $3.7 trillion in annual revenues.
Each quarter, the Business Roundtable's CEOs are asked about their expectations for sales growth, hiring and capital spending as well as a prediction for US gross domestic product.
This quarter, 116 CEOs responded to the survey. The vast majority -- 88 per cent -- expected higher sales at their company in the next six months, while just 4 per cent anticipate lower sales. In March, 88 per cent expected higher sales and one per cent expected lower sales.
-- AFP
