Tag Archives: GDP

CEOs predict increased hiring and sales

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America’s CEOs are slightly more optimistic about the economy over the next six moths, according to a Business Roundtable survey released today.
The chief executives of leading companies expect increased sales and capital expenditures as well as more job creation compared to the third quarter.
The Business Roundtable CEO Economic Outlook Index increased to 84.5 from 79.1,  with expectations for 2014 GDP growth at 2.2 percent, in line with the previous two quarters.
“CEO expectations for economic expansion in the next six months increased slightly from last quarter, with expectations for sales, capital investment and hiring all tracking somewhat higher,” Jim McNerney, chairman of Business Roundtable, and chairman, president and CEO of The Boeing Co. said in a news release.
“In aggregate, our expectations are consistent with an economy that will continue along the path of steady, modest recovery into the first half of 2014.  These soundings are also consistent with an overall economy that, despite progress, is not yet performing at its full potential.”
Seventy-three percent of the executives surveyed said they expect their company’s sales to increase in the next six months, while only 8 percent foresee a sales decrease.
Thirty-nine percent said they will increase capital spending and 34 percent plan to increase hiring.
Click here for complete results of the Roundtable survey.

Trust me, I’m from the government

Government number crunchers always provide fascinating reading.

Today, for example, the Commerce Department said the GDP from 1998-2007 was on average actually 2.7 percent, or $301.5 billion, higher that we thought.

Higher, that is, “if research and development (R&D) spending was treated as investment in the U.S. national income and product accounts,” according to the the Bureau of Economic Analysis.

So, does that mean if we count R&D spending the recession really wasn’t all that bad?

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Economic roller coaster continues

The Commerce Department released its third estimate of first quarter GDP and once again it’s lower. Apparently, consumers didn’t spend as much in the quarter as previously thought and the GDP rose 2.7 percent, instead of 3 percent.

We all wish the economy was recovering faster, but at least it’s growing and continued growth looks likely.

On Thursday, government reports showed that businesses have been spending more on machinery, computers, metals and other goods in the second quarter. That is a strong indicator that businesses are positive about the coming months, will boost production and may finally start hiring later in the year.

Another good sign: The average interest rate for a 30-year fixed-rate mortgage fell to the lowest point on record — 4.69 percent. That hopefully will boost home sales, which dropped in May when the end of the federal tax break for homebuyers.

However, interest rates have been low for months and the housing market hasn’t really responded.

And this week brought the latest word from the big brains at the Federal Reserve. And that word was “fragile.”

The Fed expects the economy to keep growing, but the board’s mood was less upbeat than before. Its outlook is tempered by a sluggish domestic labor market and concern about Europe’s financial crisis.

Whew! What a week. I need a vacation.

Sometimes good isn’t good enough

The U.S. gross domestic product grew at a rate of 3.2 percent in the first quarter and consumer spending increased by 3.6 percent, the government reported today.

Normally, these kind of numbers would be cause for celebration, but investors weren’t impressed, pushing the Dow down more than 100 points in late afternoon trading.

Some analysts were expecting slightly higher growth in the GDP and some experts noted that 1Q growth was down from 5.6 percent in the fourth quarter.

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