NEW YORK — Although CEOs for large US companies remain broadly confident on the economy, sentiment took another hit in the third quarter over concerns about US trade confrontations, according to a survey released Monday.
The survey, released a few hours after new US tariffs on Chinese goods took effect, showed a drop in expected hiring and investment, despite a modest increase in the outlook for sales over the next six months.
The CEO economic outlook index, which includes expectations for sales, capital spending and hiring, fell to 109.3 from 111.1 in the second quarter, according to the Business Roundtable, which represents Apple, IBM, General Motors and other US giants.
The findings come on the heels of a Federal Reserve report earlier this month noting that trade concerns had “prompted businesses to scale back or postpone capital investment.”
A special question in the new Business Roundtable survey found 63 % of CEOs said recent tariffs and uncertainty about trade would negatively affect capital investment decisions in the next six months.
Still, all three benchmarks remain high by historic levels.
“I think the negative effects are being masked by the overwhelmingly positive effects of the tax and regulatory policies,” Business Roundtable chief executive Joshua Bolten told reporters.
“Almost none of our companies see it as a positive,” Bolten said of the tariffs.
President Donald Trump’s administration on Monday imposed tariffs on another $200 billion of Chinese imports, meaning half of everything the US buys from China is now subject to additional duties. — AFP
