CEOs’ confidence in the economy has soared, breaking a multi-year holding pattern, as excitement builds over the president’s proposed tax cuts, regulatory reductions and infrastructure spending plans.
In addition to Trump’s pledges, the economy has been humming along nicely in the background, with unemployment figures released last week falling to new lows and the Federal Reserve poised to raise rates again.
CEO group Business Roundtable’s first-quarter economic outlook index, based on the responses of 141 members, jumped to 93.3 points from 74.2 points in the previous quarter. The increase is the biggest recorded since 2009, when the economy was emerging from the deepest depths of the financial crisis, and has exceeded the poll’s long-term average of 79.8 for the first time in almost two years.
“I am enthusiastic about the opportunity to enact a meaningful pro-growth agenda that will benefit all Americans,” JPMorgan CEO Jamie Dimon, who is also Business Rountable’s chairman, said. “As these results confirm, business confidence and optimism have increased dramatically.”
Those surveyed nominated tax reform as the best way to create a positive environment for growth, followed by regulatory reform and infrastructure investment, respectively. “CEOs appear to be responding to early indications that the new administration is serious about creating a better environment for job creation and investment in America,” the group’s CEO, Joshua Bolten, said.
The president himself embraced the survey results: “Great optimism in America—the results will be even better,” he wrote on Twitter.
Increased business confidence is translating to bolder planning, with an index on hiring expectations climbing by 18.0 points to 73.6 and another on capital spending increasing by 18.4 points to 82.6. A measure of sales expectations rose by 21.0 points to 123.8.
Overall, CEOs expect the economy to grow by 2.2% in 2017, up from an expected 2.0% indicated in the previous quarter.
In December, CEOs had reacted more cautiously to Trump’s election, with the peer group’s fourth-quarter economic outlook index rising more modestly to 74.2 points, up from 69.6 in the third quarter.
Chief Executive’s March CEO Confidence Index also indicates the mood has become more optimistic, rebounding to 7.41 out of 10 after edging back slightly in February to 6.99 from a high of 7.07 in January.
Trump is still having trouble getting Republicans to agree on how to repeal and replace the Affordable Care Act and there’s consternation among lawmakers as well as CEOs about how he will fund his tax cuts and infrastructure spending plans.
Chief Executive Group exists to improve the performance of U.S. CEOs, senior executives and public-company directors, helping you grow your companies, build your communities and strengthen society. Learn more at chiefexecutivegroup.com.
0
1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
