Despite a substantial improvement in CEOs’ sales outlook for the next six months, their future capital spending and hiring plans remain notably timid. While companies have become much more optimistic on the economic in the near-term, they have yet to gain confidence in the recovery’s long-term prospects.
- 51% of CEOs expect higher revenue vs. 34% last quarter.
- 78% don’t expect to increase capital spending vs. 88% previously.
- 87% don’t expect to increase the size of their workforce yet vs. 94% previously.
As Pragmatic Capitalist points out, maybe that’s why insiders aren’t actually buying the stocks of the companies they work for. Then again, insiders aren’t always the best traders either.
(Data via Business Roundtable.)