Trump has US business leaders optimistic, survey says

By Jim Puzzanghera, Los Angeles Times

WASHINGTON — The nation’s top chief executives like what they’re seeing and hearing from President Trump and his fellow Republicans, according to survey results released Tuesday by the Business Roundtable.

The economic expectations of the heads of the nation’s largest companies jumped in the first quarter by the most in more than seven years amid optimism about corporate tax cuts, reduced regulations and a boost in infrastructure spending promised by Trump and congressional leaders, the trade group found.

“I am enthusiastic about the opportunity to enact a meaningful pro-growth agenda that will benefit all Americans,” said Jamie Dimon, chief executive of JPMorgan Chase & Co. and this year’s chairman of the Business Roundtable.

“As these results confirm, business confidence and optimism have increased dramatically,” he said.

The group, composed of the heads of the largest U.S companies, said its quarterly CEO Economic Outlook Index shot up to 93.3 from 74.2 in the second quarter.

It was the biggest increase since the third quarter of 2009 and the highest level in nearly three years. The index is based on projections for sales, capital spending and hiring over the next six months, and ranges from -50 to 150, with a reading above 50 indicating the economy is expanding.

Since the survey began in 2002, the average has been 79.8. The first quarter was the first time the index has been above its historical average in nearly two years.

The increased optimism from major corporate chieftains echoed recent surveys showing small-business owners and consumers also are feeling much better about the economy since Trump’s election.

“Clearly CEOs are very positive about prospects for hiring, sales and investment,” said Joshua Bolten, president of the Business Roundtable. “Their view of the overall economy has also brightened slightly.”

The 141 CEOs surveyed between Feb. 8 and March 1 projected that the U.S. economy would expand 2.2 percent this year. That was up from a 2 percent prediction in December but still well below the 3 percent to 4 percent annual growth Trump said he could produce.

“I think the CEOs generally and strongly feel we can do a lot better than we’re doing,” Dimon said. “We’re not believers that we’re someone stuck in low growth … we just need good policy at this point.”

Asked the best way Washington could boost their company’s growth, 52 percent of survey respondents said tax reform, 27 percent said regulatory reforms and 15 percent said infrastructure investment.

All three are top priorities of Trump.

Bolten, who was White House chief of staff for President George W. Bush, said it was hard to determine the effect of Trump taking office on the index, as opposed to the overall improving economy, but “certainly a big part of it has to be the political environment here in Washington.”

“The Trump administration and the congressional leadership are promoting an agenda that our CEOs view as very positive,” Bolten said. “There’s obviously a lot of turbulence around the healthcare act but the other elements of the agenda, we think, are well on track.”