CEOs more upbeat about nation’s growth

The nation’s chief executives are more optimistic about sales, capital spending and overall economic growth this year.

The Business Roundtable’s latest CEO economic outlook index for the first quarter shows that business leaders are forecasting faster economic growth this year with sales expectations hitting a three-year high.

{mosads}As business leaders evaluate the future direction of the U.S. economy, trade remains a top legislative target “ripe for bipartisan cooperation.”

“The U.S. economy and the job outlook are starting the year in a stronger position than 2014,” said Randall Stephenson, chairman of Business Roundtable and CEO of AT&T.

Overall, the latest CEO index is an improvement from the October-November quarter but has been in the same general range for the past 18 months.

Still, the six-month outlook for sales hit a three-year high, up 7.4 points after two quarters of decline. 

Spending expectations rose 9.2 points and hiring expectations were mostly flat, up only 0.4 points.

“It’s clear the U.S. economy continues to perform below its full potential,” Stephenson said.

CEOs said they expect economic growth of around 2.8 percent, slightly below 3 percent estimates, but up from the 2.4 percent projected last quarter.

Stephenson said passage of tax-extender legislation late last year gave CEOs the confidence to increase their spending and invest more in the next six months.  

But Congress must pass trade promotion authority, as well as act on business tax reform, infrastructure investment and regulatory issues that can accelerate business investment to “create more good-paying, middle-class jobs and boost U.S. economic growth,” he said.

The CEOs’ response to a special question on the survey on the benefits of more trade opportunities showed that increased international trade would result in more U.S. hiring.

The Obama administration is pressing lawmakers to move forward on fast-track authority — which would expedite trade deals through Congress — using the argument that writing trade rules will keep the United States globally competitive, create more jobs and grow the nation’s economy.

Catherine Novelli, under secretary of State for Economic Growth, Energy and the Environment, said she and Secretary of State John Kerry among many others throughout the Obama administration are regularly talking to Congress about the far-reaching benefits of expanded trade.

On Monday, she urged lawmakers to get TPA done as soon as possible and before the Trans-Pacific Partnership’s (TPP) completion, which she said is expected some time this spring.