The Business Roundtable, an assemblage of CEOs at large American companies, had some gloomy news in a survey released yesterday. Although 78 percent of the respondents said they expected their company's sales to increase over the next six months, just 37 percent said they plan to increase their company's capital spending, and just 32 percent said they plan to expand their company's workforce.
Not coincidentally, the CEOs expect the American economy to continue to grow at an anemic pace. The same survey predicted that GDP would increase at a rate of 2.2 percent for 2013, which would match the rate of growth for 2012.
There was a piece of good macroeconomic news yesterday: The U.S. government announced that it was on track to post its lowest budget deficit in five years. The deficit for the first eight months of the current fiscal year - which started on October 1, 2012 - is down 26 percent from the year-earlier period.
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