Americans are understandably grumpy about 2022 amid buffeting by surging inflation, supply-chain disruptions, labor shortages and Covid-19. They might or might not feel relieved to learn that the country’s business leaders are more upbeat than ever.
The Business Roundtable, the lobby of about 200 chief executives of major U.S. companies, said its quarterly Economic Outlook Index reached an all-time high at the end of 2021, based on forecasts for capital spending, employment and sales growth during the next six months. These CEOs' hiring expectations also are at a record high.
More than 300 companies in the S&P 500 index, in their latest annual reports, say they will hire more people this year than at any point during the past three decades and about 50% more than the second-highest year of 2020, according to data compiled by Bloomberg.
That was before the U.S. and its allies reacted to Russia's invasion of Ukraine with sanctions that will surely disrupt the global economy. Uncertainty is a given.
Still, five days after the assault began, Target Corp. surprised analysts last Tuesday with a robust fourth-quarter profit and outlook of rising operating income and revenue. The Minneapolis-based chain of general-merchandise discount stores, whose shares rose 13.5% before the market opened that day, the most in three years, even had a sanguine response to fears that inflation would devastate its bottom line.
“We certainly see the inflationary cost pressure,” Target chief financial officer Michael Fiddelke said in an interview with Bloomberg TV. “We have a lot of levers to pull within our business to make sure we're protecting value for our guests. Price is the lever we pull last.”
Confidence persists even with JPMorgan Chase & Co. CEO Jamie Dimon warning that disconnecting Russian banks from the global SWIFT messaging system may bring “unintended consequences.” Kohl's Corp. CEO Michelle Gass wasn't retreating on Tuesday when she said the retailer remains “extremely confident in the future growth and cash-flow generation of our business,” in response to queries about rising prices and Russia's invasion of Ukraine.
It’s never hard to dig up worried CEOs, and some pundits have done so. Costs are rising and the sanctions aimed at Russia add to the atmosphere of uncertainty.