CEOs See Improvement in Capital Spending But are Less Optmistic on Sales, Employment

CEOs estimate real GDP will grow by 1.9% in 2010 -- down significantly from the 2.7% increase in the previous survey.

The Business Roundtable's third quarter 2010 CEO Economic Outlook Survey offeres up a mixed bag when it comes to the economy.

"Sales forecasts are down from last quarter, prompting CEOs to remain cautious," said Ivan G. Seidenberg, Chairman of Business Roundtable and CEO of Verizon Communications. "However, they are preparing for future demand by increasing investment in capital."

In particular, the CEOs anticipate capital spending to increase over the next six months.

When it comes to the workforce, 31% expect to increase hiring. This compares to 39% who foresaw an increase in hiring in the second quarter.

In terms of the overall U.S. economy, CEOs estimate real GDP will grow by 1.9% in 2010 -- down significantly from the 2.7% increase in the previous survey.

The group's Economic Outlook Survey Index decreased to 86.0 in the third quarter of 2010, down from 94.6 in the second quarter of 2010.

Business Roundtable is an association of chief executive officers of leading U.S. companies with nearly $6 trillion in annual revenues and more than 12 million employees.

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