Latest news with #BusinessRoundtable
Business Insider
2 days ago
- Business
- Business Insider
CEOs haven't felt this gloomy about the economy since the pandemic
The Business Roundtable CEO index dropped 15 points in the second quarter, its lowest since 2020. The decline was driven by plans for reduced spending, sales expectations, and employment. CEOs cited trade policy uncertainty as the driving reason behind a declining index. CEOs aren't feeling too hot about the economy. The Business Roundtable's CEO Economic Outlook Index dropped by 15 points in the second quarter to 69, marking its lowest level since 2020 and well below its historic average of 83. A total of 169 CEOs participated in the survey, which was conducted between June 2 and June 13. "The quarter's survey results signal that Business Roundtable CEOs are approaching the next six months with caution," Cisco CEO and Business Roundtable chair Chuck Robbins said in a release accompanying the results. The survey assesses three categories: capital spending plans, hiring intentions, and sales expectations. Hiring plans saw the steepest decline this quarter, dropping 19 points. Capital investment plans followed with a 15-point decrease, and sales expectations fell by 11 points. The survey indicates that 41% of CEOs surveyed expect their company to decrease employment in the next six months, compared to 29% last quarter. The percentage of CEOs surveyed who expected hiring to increase in the next six months also dropped quarter over quarter, from 33% to 26%. It's the latest indication of a challenging job market, as many companies have made moves to flatten their org charts and slow hiring. A number of major companies have conducted layoffs this year, including Meta, Microsoft, BlackRock, and Intel. Other companies, like Salesforce, have announced a pause on hiring engineers. Business Roundtable CEO Joshua Bolten said the quarterly decline was driven by "broad-based uncertainty," stemming from an "unpredictable trade policy environment." The CEO said expanding tax reform is important but will not solve the issue on its own. "American businesses also need the Administration rapidly to secure deals with our trading partners that open markets, remove harmful tariffs and provide certainty for investment," Bolten said. President Donald Trump's tariff threats have taken consumers and businesses on a roller coaster ride over the last few months. While some tariffs were enacted in April, the bulk of new tariffs have been paused until July to allow time for negotiations. The ups and downs have resulted in sharp stock market swings, led some companies to make tweaks to their supply chains, and impacted retail and food service sales as well as the outlook on home sales. Uncertainty around tariffs has made long-term planning difficult for many companies. The Federal Reserve's Beige Book, released this month, indicated that half of the districts saw "slight to moderate" declines in economic activity, while three reported no growth at all. The Trump administration has said that tariff policies are in the best interest of the US, even if they create some short-term pain. While the report paints a largely gloomy picture of CEO sentiment, it's not at levels previously seen during the last recession. The Business Roundtable states that "readings at 50 or above indicate economic expansion," while readings below indicate a recession. In the second quarter of 2020, the economic outlook plummeted to an overall Index of 34.3, and quickly rebounded to 64 in the next quarter. However, the survey adds to a growing chorus of CEOs who are voicing concern for the near future as they navigate a choppy economic environment.
Axios
2 days ago
- Business
- Axios
Exclusive: CEO economic outlook sinks to five-year low
Economic sentiment among America's top CEOs plunged to the lowest level since 2020, according to a new survey by the Business Roundtable, first seen by Axios. Why it matters: Chief executives have not been this sour on the economy since the once-in-a-century pandemic, with significant downgrading expectations for hiring, investment and sales growth. By the numbers: The Business Roundtable's CEO Economic Outlook Index fell by 15 points to 69, a drop that brings the index well below its historical average of 83. It remains above the level that signals an economic recession. The index decline is a result of tepid expectations for the months ahead, most notably on the hiring front. The employment subindex plummeted by almost 19 points, with more than 40% of CEOs expecting to shrink their workforces in the next six months — up from the roughly 30% who said the same last quarter. A subindex for capital expenditures — investment in new buildings, equipment, technology and more — fell roughly 15 points, with fewer executives planning to increase spending. That came alongside a more than 10-point drop in sales expectations, with a smaller cohort of CEOs expecting higher revenues. What they're saying: "Driving this quarter's decline in the Index is broad-based uncertainty, arising substantially from an unpredictable trade policy environment," Joshua Bolten, the Business Roundtable's CEO, said in a release seen by Axios. "Extending and enhancing tax reform is critical, but it is not sufficient. American businesses also need the Administration rapidly to secure deals with our trading partners that open markets, remove harmful tariffs and provide certainty for investment," Bolten said. The group surveyed 169 of its members in the first two weeks of June, when the U.S.-China trade truce was at risk of breaking down, before top Trump officials met with their Chinese counterparts. Flashback: CEOs had economic euphoria in the early years of Trump's first term, largely on the back tax cut expectations. In the comparable period in 2017, the CEO Economic Outlook Index hit a multiyear high. One year later, it was coming off the highest level ever. The bottom line: That's no longer the case. Uncertainty about trade and other policies is weighing on the CEO class, which has generally been hesitant to publicly criticize the Trump White House — and trumping any excitement about the prospect of extended tax cuts.
Yahoo
2 days ago
- Business
- Yahoo
Lowe's CEO says young workers should stay away from the corporate office and close to the cash register
Lowe's CEO Marvin Ellison says corporate jobs are more at risk from AI than front-line work. The home improvement exec said there is unmet demand for skilled trades and customer-facing jobs. "AI isn't going to fix a hole in your roof," he said at a Business Roundtable forum in DC. Artificial intelligence can do a growing number of tasks, but there's a lot it can't do. "AI isn't going to fix a hole in your roof," said Lowe's CEO Marvin Ellison. "It's not going to respond to an electrical issue in your home. It's not going to stop your water heater from leaking." Speaking Tuesday at Business Roundtable's CEO Workforce Forum in Washington, DC, Ellison highlighted the large unmet demand for skilled trades workers in the US. The US Bureau of Labor Statistics estimated in April that there were nearly a quarter million job openings in construction and 381,000 in manufacturing. Whether on a construction site or in one of his 1,748 home improvement stores, Ellison said jobs working on the front lines will likely be some of the last to be disrupted by AI. "When young people come to me and they desire to work in the corporate office, my advice to them is: stay as close to the cash register as you can," he said. "Stay close to the customers, because you will always have employment opportunities to grow." Ellison's comments came within hours of Amazon CEO Andy Jassy posting a memo that said the tech giant would likely "reduce" its white-collar workforce in the coming years due to AI. He's the latest in a chorus of executives predicting significant workplace disruption from AI in areas like customer service, tech functions, and entry-level office work. The changes have led to more than a few younger workers shifting toward blue-collar work instead of the traditional debt-financed four-year undergraduate degree approach. Ellison highlighted one such opportunity for young workers at Lowe's: a program for Lowe's employees offers tuition-free education for completing a two- or four-year curriculum. He said that employees who complete the program sometimes go on to work for Lowe's customers. "It could be a general contractor, could be a builder, and we're perfectly OK with that," Ellison said. "It fills the need that is much greater." Read the original article on Business Insider
Business Insider
3 days ago
- Business
- Business Insider
Lowe's CEO says young workers should stay away from the corporate office and close to the cash register
Artificial intelligence can do a growing number of tasks, but there's a lot it can't do. "AI isn't going to fix a hole in your roof," said Lowe's CEO Marvin Ellison. "It's not going to respond to an electrical issue in your home. It's not going to stop your water heater from leaking." Speaking Tuesday at Business Roundtable's CEO Workforce Forum in Washington, DC, Ellison highlighted the large unmet demand for skilled trades workers in the US. The US Bureau of Labor Statistics estimated in April that there were nearly a quarter million job openings in construction and 381,000 in manufacturing. Whether on a construction site or in one of his 1,748 home improvement stores, Ellison said jobs working on the front lines will likely be some of the last to be disrupted by AI. "When young people come to me and they desire to work in the corporate office, my advice to them is: stay as close to the cash register as you can," he said. "Stay close to the customers, because you will always have employment opportunities to grow." Ellison's comments came within hours of Amazon CEO Andy Jassy posting a memo that said the tech giant would likely "reduce" its white-collar workforce in the coming years due to AI. He's the latest in a chorus of executives predicting significant workplace disruption from AI in areas like customer service, tech functions, and entry-level office work. The changes have led to more than a few younger workers shifting toward blue-collar work instead of the traditional debt-financed four-year undergraduate degree approach. Ellison highlighted one such opportunity for young workers at Lowe's: a program for Lowe's employees offers tuition-free education for completing a two- or four-year curriculum. He said that employees who complete the program sometimes go on to work for Lowe's customers. "It could be a general contractor, could be a builder, and we're perfectly OK with that," Ellison said. "It fills the need that is much greater."
Yahoo
3 days ago
- Business
- Yahoo
Jamie Dimon has 2 words for business leaders complaining about economic problems
Jamie Dimon said that business leaders should anticipate that the economy will have problems. At an event in DC, the JPMorgan CEO said companies shouldn't continuously change their plans. Dimon said operating in a "stop-start" way risks harming confidence in existing projects. Don't expect much sympathy from Jamie Dimon if you're complaining about the economy. When asked about the country's economic headwinds, the JPMorgan Chase CEO kept it short and not particularly sweet: "That's life." Speaking in DC at the Business Roundtable's CEO Workforce Forum on June 17, Dimon said companies shouldn't be surprised by economic turbulence. He added that it's unwise to make plans based on short-term predictions of what will happen in the next 12 or 18 months. "I don't buy this notion that somehow we have the right to expect everything to be constantly easy and easy to get by," he said. "There will be economic problems." Those seemingly inevitable problems, though, shouldn't drastically change how a company functions or the programs it funds. Dimon said that JPMorgan will sometimes trim initiatives, but doesn't cut them if they're working well. "We don't do almost anything stop-start, whether it's training people, hiring people, opening brands, hiring bankers, doing technology," he told the crowd. "We have a plan, and we're going to do the plan, and then we navigate through the ups and downs of the economy." Companies that operate more reactively risk harming confidence in their existing projects, such as training programs for young people. "Don't change your plans at all," Dimon said. Americans are generally spooked about making big economic decisions amid today's unpredictability. And among the C-suite, the word "uncertainty" was popular on recent earnings calls. Representatives for JPMorgan did not immediately respond to a request for comment from BI. Correction: June 17 — An earlier version of this story misstated the name of the conference. It is the Business Roundtable's CEO Workforce Forum. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
