U.S. chief executives still expect robust economic growth but are less bullish than they were a few months ago, according to a quarterly survey by the Business Roundtable released on Tuesday.
The survey of Roundtable members -- CEOs from large U.S. companies -- found that 85 percent expect their sales to increase in the second half of 2005, down from 89 percent in the previous survey.
It found 49 percent expect to raise capital spending, down from 60 percent in March, and 35 percent expect to increase employment, compared with 36 percent three months ago.
“The economy seems to be growing strongly,” Hank McKinnell, chairman of the Business Roundtable and chairman and CEO of Pfizer Inc., told CNBC television. “It’s looking like what I call the Goldilocks economy. It’s not too hot and not too cold.”
The overall CEO Economic Outlook Index eased to a reading of 94.3 from 104.4 in the previous poll. That level is the lowest since March 2004, but any reading above 50 signifies economic expansion.
CEOs expect overall U.S. economic growth of 3.4 percent in 2005, down from 3.5 percent in the previous survey.
“Overall, the survey is consistent with an easing from the robust growth of 2004, but projects continued solid growth and business confidence,” McKinnell said in a press release.
