A survey of 137 CEOs from the largest American companies revealed executive optimism and confidence is at a new high following the passage of the Tax Cuts and Jobs Act.
The Business Roundtable Q1 2018 CEO Economic Outlook Index, which is a composite of CEOs' projected sales, spending and hiring during the next six months, climbed to 118.6 in the first quarter of 2018. That's up from 96.8 in the fourth quarter of 2017, and represents the highest level since the survey launched in the fourth quarter of 2002.
The survey was conducted between Feb. 7 and Feb. 26, and doesn't include sentiment about President Donald Trump's March 8 announcement of steel and aluminum tariffs, Business Roundtable notes.
Here are two additional findings from the survey.
1. CEOs predict 2.8 percent gross domestic product growth for 2018. That's up from 2.5 percent GDP growth the executives predicted in the fourth quarter of 2017.
2. The first quarter index of 118.6 significantly exceeded its historical average of 81.2, with all three parts of the index breaking records.
- Hiring: CEOs' plans for hiring increased 22.8 from the previous quarter to 98.5.
- Capital investment: Executives' plans for capital spending grew 22.7 from the previous quarter to 115.4.
- Sales: CEOs' sales predictions increased 19.9 from the fourth quarter of 2017 to 141.9.