A majority of America’s CEOs plan to hold back on hiring and capital spending over the next six months as energy costs and interest rates begin to squeeze the economy, according to a survey released Monday.
While about 21 percent of the 109 companies surveyed for the Washington-based Business Roundtable said they had passed increased energy costs on to their customers, 23 percent said they absorbed the added costs.
As a result, 50 percent of the executives surveyed said they will not increase capital spending in the next six months and 11 percent said they will decrease it. In addition, 39 percent said they will not add any new employees and another 29 percent said they plan to decrease their staff.
“The outlook of the CEOs in this survey suggests that the pace of growth in the U.S. economy is slowing down following a period of historically strong economic expansion,” said Harold McGraw III, chairman of Business Roundtable and president and CEO of The McGraw-Hill Companies.
However, it appears energy prices may be stabilizing and the Federal Reserve, following 17 straight rate increases until June, has hinted it may hold off on further increases. Those factors could turn CEOs’ outlooks around, McGraw said.
