CEOs expect solid growth, slower pace

Business Roundtable's May 2005 CEO Economic Outlook Survey shows that the U.S.'s leading CEOs expect continued solid economic growth for the next six months, with a slower pace expected than that of 2004. As a result, the Business Roundtable CEO Economic Outlook Index eased moderately to 94.3, from its first quarter level of 104.4.

Business Roundtable is an association of chief executive officers of leading corporations with a combined workforce of more than 10 million employees and $4 trillion in annual revenues.

"The vast majority of CEOs (85 percent) expect sales to continue to increase, and 70 percent expect to add jobs or maintain current levels of employment through 2005. Capital spending plans have moderated slightly, with 49 percent expecting to increase spending and 47 percent expecting it to remain the same in the next six months," said Hank McKinnell, Business Roundtable chairman and chairman and CEO of Pfizer Inc.

On overall economic growth, CEOs are assuming GDP growth of 3.4 percent in 2005—a healthy rate of growth compared with the past 35 years, during which GDP growth averaged 3.1 percent.