Reply #46: CEOs' economic view falls near five-year low

[UpInArms]

http://www.reuters.com/article/ousiv/idUSN1845331120080618

BOSTON (Reuters) - U.S. chief executives' second-quarter view of the economy was the bleakest in almost five years, with more now expecting their companies to cut jobs over the next six months, according to a survey by the Business Roundtable released on Wednesday.

The quarterly CEO Economic Outlook Index tumbled five points to 74.5 in the quarter, its lowest level since October 2003. Any reading above 50 indicates growth.

CEOs also cut their overall U.S. economic growth forecast, looking for 2008 gross domestic product to rise 1.3 percent, down from 1.5 percent forecast last quarter.

Thirty-one percent said they expected their companies' U.S. headcount to fall over the next six months, versus 28 percent who expected it to rise.

Sixty-eight percent said they expected their sales to rise over the next six months, while 52 percent expect their U.S. capital spending to remain flat over that period.

...more...