Tuesday, September 28, 2010
Fewer U.S. CEOs Project Gains in Sales, Employment
CEO's in the United States are not confident that sales or employment will improve anytime soon. Firms are using the current lull in the economy to invest in equipment and other capital, not new hires. Consumers and firms are cautious and confidence is low. Most CEO's are not fearing a "double dip" recession but they feel that the recovery will take a longer period of time compared with your average recession. CEO's and members of the Business Roundtable are in favor of China strengthening their currency and the Bush tax cuts remaining in the tax structure. CEO's won't start hiring until they see signs of stable growth in the U.S. economy.
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4 comments:
Considering that this was the longest recession since the Great Depression, it is not surprising that this will take longer to rebound from than the "average recession." On the other hand, it might be desirable for people to hold off on consumption right now and invest in savings - we should be taking care of our consumer debt problem.
This is not a good sign for us students graduating soon if companies are not hiring until the growth of the economy is more stable. If we do go into double-dip recession it will take even longer for the economy to recover and we may never find jobs.
I understand where the CEO's are coming from, the last thing they want to do is hire more people for work they dont need... Sadly we picked a bad time to graduate but in the end we will all be getting jobs..
I agree with Becky. Since the recession was so incredibly long the recovery will also be very long. Though I understand that CEO's arent hiring because of the less than ideal circumstances, I think they should make some hires and jump start our economy. If a large number of our CEO's hired on workers that would be a large growth in employed while each CEO only taking a small amount of risk. For personal reasons (finding a job) I also hope that the CEO's will hire on workers.
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