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Execs Predict Economic Expansion in 2012

CEOs in a survey think 2012 will bring economic improvements.

Chief executive officers are breaking open the bubbly in advance of New Year's Eve, as the Business Roundtable's economic outlook index revealed that company leaders expect a 2 percent economic expansion in 2012, Bloomberg reports.

However, nearly half of CEOs also said that they will be getting greater cost pressures in the forms of regulations and more expensive raw materials.

Their cheerier outlook could be due to better business conditions. The Tatum Survey of Business Conditions indicates that there has been a sharp improvement in the last 30 days and in the recent 60-day outlook, which could suggest that the economy is slowly changing course and gaining momentum in its recovery.

Tatum said the survey results were "so strong that we are tempted to cancel our recession concerns for the near term. If we get another month of confirmation we will wipe our brows and look forward to a better beginning of 2012."

These findings contradict research from Bank of America Merrill Lynch, which determined that CFOs scored the economy at 44 points out of 100, a drop from the 47 points they awarded and the lowest ranking seen in the 14 years that the survey has been conducted.

Comments

Topic Expert
Charley Kyd
Title: Founder
Company: ExcelUser
(Founder, ExcelUser) |

What's the record of similar surveys of CEOs in the past? Do they have any predictive value?

The Conference Board's Consumer Confidence Index is NOT a leading indicator; it's a coincident indicator. I wonder if this survey is the same?

Topic Expert
Charley Kyd
Title: Founder
Company: ExcelUser
(Founder, ExcelUser) |

What's the record of similar surveys of CEOs in the past? Do they have any predictive value?

The Conference Board's Consumer Confidence Index is NOT a leading indicator; it's a coincident indicator. I wonder if this survey is the same?

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