U.S. chief executives have become slightly less optimistic about the economy in the past quarter, but half plan to increase capital spending in the next six months, according to a survey released on Wednesday.
The Business Roundtable's Economic Outlook Index slipped to 98.9 in the December survey from 101.7 in September, reflecting a somewhat less robust employment outlook and a marginal decline in the sales outlook.
Business Roundtable, a group of chief executives of U.S. companies, said the survey found CEOs expect gross domestic product growth of 3.5 percent in 2005, compared with 4 percent in 2004.
"CEOs are forecasting continuing solid growth with a slight easing from the robust growth of 2004," said Hank McKinnell, chairman of Business Roundtable and chairman and CEO of Pfizer Inc.
"This is most likely due to high oil prices, which increase costs to many companies and force consumers to spend more on gasoline and heating oil and to trim other expenditures," he said.
McKinnell, who called the outlook for business conditions in early 2005 "upbeat," said 40 percent of those surveyed expect employment to increase, while 40 percent expect no change.
"We remain confident that investment spending will continue to drive economic growth in the coming months," he said.
CEOs reported that health-care costs are their top concern, followed by litigation costs and energy prices.
The December survey was completed by 131 of the Roundtable's 160 member companies.
