Business leaders are feeling optimistic about their economic outlook, reaching the highest level in at least two decades, as per a survey conducted by the influential Business Roundtable. Despite this positive outlook, there's a looming threat - the Omicron variant.
In a statement, the Business Roundtable acknowledged this surge in their CEO outlook survey, surpassing even the highs of 2017 post-tax cuts under former President Donald Trump. However, this survey was conducted between November 3 and 22, before the Omicron news hit headlines.
Walmart (WMT) CEO Doug McMillon, who also chairs the Business Roundtable, voiced concern about maintaining robust growth in the second half of 2022, emphasizing the need for further progress in combating the pandemic, including new variants like Omicron.
CEOs anticipate increasing hiring and investment, expecting higher revenue. Almost half of the CEOs surveyed believe labor costs pose the most significant pressure facing their businesses currently.
Omicron could potentially disrupt economic recovery. The CEO of the Business Roundtable conceded that Omicron has the potential to hinder economic recovery, but it's too early to draw definite conclusions. He cautioned against premature assessments, noting that experts are still uncertain about Omicron's impact.
Despite the uncertainties surrounding Omicron, CEOs remain committed to their planned meetings. Bolten mentioned that almost all CEOs who had announced their attendance indeed showed up on the pre-scheduled Washington meeting. Strict protocols were followed, ensuring participants were vaccinated, recently tested (regardless of their role - employees, suppliers, or caterers).
The Business Roundtable survey does not offer specifics about Omicron's impact on CEOs' economic outlook. However, the broader context of the COVID-19 pandemic, including the Omicron variant, contributes to a general sense of uncertainty in economic forecasts, underlining the interconnectedness of health and economic issues.
