The nation’s CEOs are more bullish than they were in the second quarter but are worried that Washington might fail to enact another relief package.
“Further major support from the federal government is necessary to prevent economic recovery from being derailed,” said Joshua Bolten, CEO of Business Roundtable, the group that of big-business CEOs that released a survey of its members Wednesday.
The organization’s survey found that an increasing number of executives expect growth in sales, hiring, and capital spending in the third quarter. They also project a 2.4% contraction in gross domestic product for the year, versus a 3.8% contraction in the previous estimate.
Yet those favorable projections hinge on another relief bill.
The survey notes “that CEO plans remain fragile and recovery requires more support to be sustained and accelerated.” It also found that an overwhelming majority of them, 76%, don’t expect operations to return to pre-pandemic levels until at least 2021.
Talks on providing additional relief has stalled in Congress, as political leaders can’t agree on how much aid should be provided.
Walmart CEO Doug McMillon, the chairman of Business Roundtable, called on lawmakers to restart those talks.
“Business Roundtable urges the Administration and Congress to come back to the negotiating table and pass more legislation to further ease the economic challenges American workers, small businesses, and suppliers are experiencing,” he said.
The organization’s third-quarter survey was conducted between Aug. 31 and Sept. 16, 2020. Overall, 149 CEOs completed the survey.
