Friday, June 20, 2008

Fred Business News - A third of CEOs expect to slash payrolls

Nearly one-third of the country's top executives expect to cut payrolls in the coming months, reflecting fallout from the housing crisis as well as soaring energy prices.

At the same time, a survey by the Business Roundtable, released Wednesday, showed that most executives expect sales and capital investment to remain at current levels or even improve over the next six months.

That's consistent with expectations from the Federal Reserve and other economists who say they think the fragile economy will strengthen later this year and into next year - even as the nation's unemployment rate, a lagging indicator of business health, rises. As in the past, many employers won't want to ramp up hiring until they are sure the economy is really back on a firm footing.

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