CEOs anticipate more business spending

Company leaders could seek out more investment loans in the coming months, as many expect business to increase and spending to jump. Business Roundtable's CEO Economic Outlook Survey for the first quarter of 2013 revealed many executives have high expectations for the market over the next six months, as they anticipate increased sales and more spending. 

Data suggests leaders anticipate strong sales, expansion 
The survey data showed respondents anticipate 2.1 percent growth in 2013, a small gain over the 2 percent predicted in the previous survey. However, the overall composite index saw a huge increase. The index jumped to 81, compared to 65.6 in the fourth quarter of 2012. This leap puts the index at its highest level since the second quarter of 2012 and suggests business leaders are anticipating significant sales growth and expansion.

Seventy-two percent of respondents forecasted their sales will increase in the coming six months, compared with just 58 percent who said the same late last year. Plenty also plan to increase their business spending, with 38 percent claiming it will increase. However, these strong numbers don't mean companies will be adding to their workforces; only 29 percent of respondents plan to hire new employees soon.

"CEOs foresee somewhat better economic performance for the next six months, with improved expectations for sales and capital expenditures," said Jim McNerney, chairman of Business Roundtable and CEO of The Boeing Company. "The relatively smaller improvement in the outlook for hiring, however, may reflect ongoing uncertainty and a wait-and-see attitude about the business climate in the United States, as agreement on the nation's debt and budgetary issues remains elusive."

Strong business could mean increased need for business financing 
As more company leaders gain confidence about the future of their firms, anticipate improved sales and plan on spending more, they could notice a greater need for growth capital to ensure their business plans are on track. CEOs who want to increase spending won't always be able to do so without securing loans that will allow them to grow, enhance their product lines or invest in research for new business technology. 

Companies seeking project finance in the coming months may struggle obtaining it. In these instances, it may be helpful for business owners to work with small and mid-sized local financial institutions, rather than big banks. Not only can smaller operations provide businesses with more loan access, they can also offer unique cash management solutions for entrepreneurs. 

Getting Started

Find your ideal banker:

Select any filter and click on Apply to see results

Featured Insights

After the financial crisis of 2008, risk management became a top priority for most businesses. Metric Stream, a...

An Employee Stock Ownership Plan (ESOP) can be an effective way to create liquidity as well as serve as a means to...

Self-confidence is a valuable trait for any CEO, but it should be blended with a willingness to accept help when it’...

The growth of U.S. exports is a trend that should continue along with a strengthening global economy, says a report...

Banks are increasing commercial real estate (CRE) loans at a rate...

Bizjournals.com reports on Sept 22 that existing home sales fell in August for the first time in four months as...

A new bill signed into law on Sept. 19,...

Every bank is going to tell a prospective client that they can serve their needs, but asking the right questions...

It doesn’t have to be a total loss when the bank turns down your request for a loan to expand your business. When...

Recent News

12/16/14
San Jose, CA – December 16, 2014 – Bridge Capital Holdings (NASDAQ:BBNK), whose...
12/16/14
San Jose, CA – December 16, 2014 – Bridge Capital Holdings (NASDAQ:BBNK), whose...
12/04/14
San Jose, CA –December 4, 2014 – Bridge Capital Holdings (NASDAQ:BBNK), whose...
10/28/14
San Jose, CA – October 28, 2014 – Bridge Capital Holdings (NASDAQ:BBNK), whose...
10/16/14
Conference Call and Webcast Scheduled for Thursday, October 16, 2014 at 5:00 p.m....
10/14/14
San Jose, CA – October 14, 2014 – Bridge Capital Holdings (NASDAQ:BBNK), whose...
10/02/14
San Jose, CA – October 02, 2014 – Bridge Capital Holdings (NASDAQ:BBNK), whose...
10/01/14
Bridge Bank's Holding Company Admitted to the Sandler O'Neill Sm-All Stars Class of...
09/03/14
San Jose, CA – September 3, 2014 – Bridge Capital Holdings (NASDAQ:BBNK), whose...
BusinessWire
07/28/14
NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (“KBRA”) has assigned senior...

Twitter

Featured Insights

Featured Insight

After the financial crisis of 2008, risk management became a top priority for most businesses. Metric Stream, a...

Featured Insight

An Employee Stock Ownership Plan (ESOP) can be an effective way to create liquidity as well as serve as a means to...

Featured Insight

Self-confidence is a valuable trait for any CEO, but it should be blended with a willingness to accept help when it’...

Recent News

Banks are increasing commercial real estate (CRE) loans at a rate...

A new bill signed into law on Sept. 19,...

Twitter