Corporate financial professionals expect the US economy to drag its feet next year, with GDP growth of only 1.7 percent, according to a survey by the Association for Financial Professionals (AFP). The respondents expect the economy to generate 1.3 million new jobs.
Even those anemic rates could be jeopardized if Washington is unable to resolve the “fiscal cliff” issue in a responsible way. Nearly two-thirds of the 1,300-plus corporate financial executives surveyed said that Washington’s inability to reach consensus on a number of issues of economic importance makes them at least somewhat more hesitant to make investments for growth. Sixty percent believed the fiscal problems should be fixed with a blend of tax increases and spending cuts, but 35 percent said the government should eschew tax increases altogether.
Despite the gloomy tone of the survey, 46 percent said they think business conditions will improve in the second half of 2013. Forty-two percent expect to expand their payrolls in the US next year, and 41 percent expect to do so overseas.
This is the ninth year the AFP has conducted its Business Outlook Survey. The full survey is available here.