Corporate CEOs anticipate stagnant hiring, spending

Only about one-third of chief executives of the nation’s largest companies expect to hire or spend more in the next six months, down sharply from about 50% who said three months ago they would do so. The Business Roundtable reports today that rising oil prices earlier this year, fears surrounding Europe’s debt crisis, and political wrangling over the U.S. borrowing limit have made the business and economic environment more uncertain. Only 32% of the CEOs surveyed say they expect to spend more on long-lasting equipment, such as machinery and computers. That’s down from 61% who said so back in June. Jim McNerney, CEO of Boeing Co. and chairman of the Business Roundtable, says the results are generally consistent with slow growth, rather than a recession. The group’s economic outlook index fell to 77.6, down from 109.9 in the second quarter. A reading below 50 would signal contraction. “It’s not that it’s fallen off a cliff, but it’s moderated,” says McNerney, referring to the CEOs’ spending and hiring plans. The Business Roundtable’s results are based on a survey of 140 CEOs, done between Aug. 29 and Sept. 16. The roundtable represents CEOs of the nation’s 200 largest corporations. Read more about the report from The Associated Press here.