Business Roundtable survey indicates CEOs are still optimistic about economy

Business Roundtable survey indicates CEOs are still optimistic about economy
South Burlington, VT -- Results for the Vermont Business Roundtable's
Second Quarter, 2005 CEO Economic Outlook Survey, show that though down
slightly from the previous quarter, business executives continue to be
very optimistic with regard to sales forecasts. At the same time,
however, projections in terms of capital spending indicate a great degree
of variability when tracked over the last six quarters. In terms of
employment levels, this quarter shows Roundtable members' most pessimistic
outlook yet in terms of employment decreases for the coming six-month
period.
Bill Stritzler, Managing Director of Smugglers' Notch Resort in
Jeffersonville is a member of the Roundtable. When asked to comment on
his CEO Economic Outlook Survey responses, Stritzler said, "Sales are
expected to rise due to improved overall economic conditions and stronger
consumer confidence compared to a year ago. Employment, however, will
remain relatively level due to the tight job market in Vermont and
businesses continuing to focus on productivity improvement."
Conducted during the month of April, the Roundtable's CEO Economic
Outlook Survey enjoyed a response rate of 55%. The key findings, which
reflect the membership's outlook for the next six months, include the
following details:
* 75% of responding CEOs expect an increase in consumer sales, 23%
see no change, and 2% anticipate a decrease. [First Quarter Results:
Increase 78%, No Change 19%, Decrease 3%]
* 49% expect capital spending to increase in the next six months,
43% see no change, and 8% anticipate a decrease. [First Quarter Results:
Increase 55%, No Change 37%, Decrease 8%]
* 49% expect employment to increase in the next six months, 42%
see no change, and 9% anticipate a decrease. [First Quarter Results:
Increase 55%, No Change 38%, Decrease 7%]
According to Roundtable President Lisa Ventriss, "CEOs are reporting
significant optimism with regard to sales forecasts for the next six
months despite uncertain investments in physical plant and human
resources."