Axios reports that the “Business Roundtable’s quarterly gauge of CEO sentiment” suggests that “America’s top executives are strikingly more confident about the economy than they were three months ago.”
According to the story, “CEOs are expecting stronger sales and more capital investment, indicating that the economy might keep booming in the months ahead.
For the first time in two years, the quarterly gauge … is above its historical average, signaling the economic uneasiness that has defined recent months may finally be fading.”
Also from the story:
• “The lobbying group’s sentiment index jumped 11 points in the first quarter to 85 — topping the long-running average by 2 points. That double-digit surge reflects a larger share of CEOs planning to increase capital spending — investments in equipment, factories and the like — and expectations of stronger company sales relative to the previous quarter.”
• “Plans for hiring remain depressed relative to the number seen two years ago — a sign that the rip-roaring hiring rates have been replaced with more modest employment plans.”
KC’s View:
It is entirely fair to say that the improving economy hasn’t reached everyone yet. Inflation still is affecting people’s buying decisions. But it also is fair to say that economy is showing significant improvement, defying the dire predictions of not that long ago.
A retail CEO pointed out to me earlier this week that no matter how much people say we’ve avoided a recession, there still is a recessionary mindset that is affecting consumer behavior, and that this is just as bad. I get that, and would agree that it will take time for economic positives to take root in the collective consciousness, especially since we are in the middle of an election cycle in which nuanced observations are difficult to find.
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