Before news about the Omicron COVID variant hit, CEOs seemed to have thought economic recovery was nigh. Business Roundtable’s survey revealed that most thought they would see improvements within the next six months. The primary drivers behind these hopes were growths in major areas that show how people participate in the economy. Hiring, capital investments, and sales all grew from a previous, similar poll. However, CEOs from the group agree that the Omicron variant might put a halt to all of that.
For those who don’t know, the Business Roundtable is a lobbying group that consists of major American company CEOs. On Wednesday, they released the results of their latest poll regarding oppinion about the economy. However, the CEOs note the data was taken and processed before they knew about the potential threat of the Omicron COVID variant.
The poll showed a significant dose of optimism among CEOs, showing the highest ever headline index. The survey was started 20 years ago and shows quarterly thoughts on how the economy is doing. The headline index hit a value of 124 in the latest results, which is a 10-point increase from the previous. Other stats increased as well, with hiring intentions jumping 7 points and sales expectations rising 9 points. CEOs from the Business Roundtable believe there is a massive buildup of demand ready to explode.
In initial predictions for yearly GDP growth, the group thought we’d see a 3.9% rise. Josh Bolten, a member of the group, cited some recent legislation as highly positive for economic outlooks. Overall, nearly half of the participants thought labor costs were the leading cost pressure for their businesses. Behind that, 20% thought supply chain disruption would be the primary issue they’d face cost-wise. Lastly, a group of 17% of the CEOs marked the identification of material costs as their biggest potential problem.
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