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Chief executive officers of some of the largest U.S. companies became more optimistic about their sales and hiring prospects in the weeks before and after last month's presidential election, even as they pared plans for capital spending.
The Business Roundtable's CEO Economic Outlook Index — a measure of expectations for revenue, capital spending and employment — increased by 4.6 points to 74.2 in the fourth quarter, the highest since the second quarter of 2015, according to a survey released Tuesday. The gauge remains below its long-run average of 79.6. Readings above 50 indicate economic expansion.
The survey, with responses from 142 member CEOs, was conducted between Oct. 26 and Nov. 16. The Washington-based group didn't detail differences in responses before and after Donald Trump's victory in the Nov. 8 election.
The survey highlighted a key challenge for President-elect Trump, as a gauge reflecting plans for capital spending in the next six months declined 5.4 points to 64.2. At the same time, for the fifth straight year, CEOs said regulation was their top cost pressure, aligning with Trump's promise to increase economic growth by eliminating various rules.
"We are encouraged by the promise of a renewed focus to usher in a smarter, regulatory environment that promotes job creation and economic growth and also protects safety, health and the environment," Doug Oberhelman, the CEO of construction-equipment maker Caterpillar, who serves as Business Roundtable chairman, said in a statement.
A measure of the sales outlook for the next six months rose 4.5 points to 102.8, as 67 percent of respondents saw revenue increasing. Expectations for hiring jumped 14.8 points.
Corporate leaders project the economy will expand 2 percent in 2017, the Business Roundtable said. That's in line with the 2.2 percent median estimate of analysts surveyed by Bloomberg News.
The Business Roundtable represents companies with more than $6 trillion in revenue and about 15 million employees.