No help wanted: U.S. CEOS

WASHINGTON — A survey of U.S. chief executives shows a sharp drop in the number of large companies that plan to add jobs or hire more workers.

The Business Roundtable said Wednesday that only 29 per cent of its member CEOs plan to increase hiring over the next six months.

That’s down from 36 per cent in June, when the group last released its quarterly survey.

It’s also much lower than the 52 per cent of CEOs in early 2011 who said they planned to boost hiring, the highest percentage since the survey began in 2002.

Jim McNerney, chairman of the Roundtable and CEO of The Boeing Co., said CEOs are worried about the impact of budget cuts and tax increases that are set to take effect at the start of next year.

The pending U.S. budget changes are known as the fiscal cliff. Chief executives are also concerned about economic slowdowns in Europe and China.

The cliff “certainly throws cold water on long-term business planning,” he said in a conference call with reporters.

Only 30 per cent of CEOs expect to increase their investment in capital goods such as machinery, computers or other equipment.

Companies usually buy such goods when they are expanding. That’s down sharply from 43 per cent three months ago.

Large-company CEOs are more pessimistic about their future sales and the overall U.S. economy, the survey found. While 58 per cent expect their sales to increase over the next six months, that’s down from 75 per cent in the June report. And the CEOs forecast the economy will expand just 1.9 per cent this year, below their 2.1 per cent forecast three months earlier.

ST. JOHN’S, N.L. — Newfoundland and Labrador Premier Kathy Dunderdale says updated costs for the Muskrat Falls hydroelectric project won’t be released for several weeks.

She says she’s hopeful a related debate in the legislature can happen before the end of October.

But she says new cost estimates for the megaproject that’s expected to cost more than $6.2 billion must first be sent to federal negotiators who are hammering out a federal loan guarantee.

Dunderdale says she wants that loan guarantee finalized before cost estimates are sent to Manitoba Hydro International for analysis.

Once that’s done, new cost projections will be released before Muskrat Falls is debated in the legislature.

A federal loan guarantee would shave hundreds of millions of dollars off borrowing costs.

Dunderdale’s Progressive Conservative government is to decide later this year whether to approve Muskrat Falls.

Critics of all political stripes say the project is too risky and the province should meet its power needs incrementally.

Dunderdale and Crown corporation Nalcor Energy say they’ve explored other options but are backing Muskrat Falls.