Monday, December 10, 2018

The Outlook From Big Business

Business CEOs are forecasting 2.7 percent U.S. GDP growth in 2019, according to the estimate released Friday by the Business Roundtable as part of its fourth-quarter economic outlook. While 80 percent of the CEOs surveyed expect sales will increase over the next six months, just a little over half (53 percent) expect capital spending and hiring (56 percent) will rise.

When asked about the greatest price pressures their companies face, 13 percent of the CEOs surveyed identified regulatory costs versus 40 percent two years ago. Far more identified labor costs (37 percent) and materials costs (20 percent) as the leading cost pressures for companies.

Not surprisingly, roughly 90 percent of the CEOs surveyed said that maintaining the 21 percent corporate tax rate, enacted in the 2017 tax cut bill, and easing regulations further will benefit business activity.

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