Expectations of Economic Rebound Lead Private Companies to Increase Investments

PricewaterhouseCoopers Barometer Surveys (8/18) – After a year of pessimism and uncertainty, a greater number of leading private-company CEOs anticipate an upturn in the U.S. and world economies within the next 12 months (34 percent optimistic about the U.S. economy). Accordingly, for the first time in the last year, companies are beginning to increase their investments, particularly in new product or service introductions, followed by information technology, and marketing and sales promotion. This represents a major change in outlook going forward, given that three-fourths of these executives viewed the U.S. economy as declining in the second quarter of 2009. However, a considerable 39 percent responded that they are still "uncertain" about the U.S. economy next year, and 27 percent were pessimistic.