Confidence Among Chief Executives has Jumped this Past Quarter

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Based upon the Business Roundtable’s economic outlook index; confidence in US economy has jumped from 44.9 last quarter up to 71.5 this quarter as CEO’s anticipate increased capital spending and a boost in consumer sales. However these same executives don’t expect the job market to improve much over the next several months.

“The economy is in the throes of a long transition back to health; recovery will be long, extending beyond 2010,”said Ivan Seidenberg, chairman of the Business Roundtable.

The consensus among CEO’s is that they anticipate the US economy to grow approximately 1.9 percent next year. Based on the US commerce Dept., corporate profits grew a staggering 13.4 percent this quarter, making it the strongest performing quarter since 2004.

Among CEO’s, Healthcare is their number one concern, with a full third of them worried about rising cost of health insurance and how it will affect growth.

“This underscores the urgent need for the right kind of health care reform that can achieve real and permanent cost reductions,” Mr. Seidenberg said. “Without reform, these costs will continue to weigh down the economy and hinder job creation when we need it most.”

President Obama has been pushing health care reform along with plans to stimulate job growth, something that our economy is still struggling with. This past Tuesday he offered a series of initiatives that he hopes will get people into jobs and help small businesses which have been hit particularly hard. Some of these initiatives include tax cuts for small businesses and infrastructure spending.

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