NEW YORK (CNNMoney) -- Chief executives at America's largest companies expect sales to increase in the months ahead, with a majority planning to increase capital spending and hire more workers, according to a survey released Wednesday.
In its first-quarter survey, The Business Roundtable, an association of CEOs at large U.S. companies, said nearly all of its members expect sales to increase over the next six months. More than 60% expect additional investment in their businesses, and more than half plan to increase hiring in the next two quarters.
"Our CEOs see momentum in the economy over the next six months, with increased demand fueling greater investment and job creation," said Ivan Seidenberg, CEO of Verizon (VZ, Fortune 500) and chairman of The Business Roundtable.
But the group sees relatively subdued economic growth this year. The executives expect U.S. gross domestic product to expand 2.9% in 2011. That's up slightly from the previous survey, but is below the 3.1% growth rate reported in the fourth quarter of 2010.
John Engler, president of The Business Roundtable and a former governor of Michigan, acknowledged that the economy still faces significant challenges, including the impact of higher gas prices on consumer spending.
"There is very good news in this survey, but it's not all sunny and blue skies," he said. "There are still lots of things to worry about."
One of those things to worry about, he said, is the possibility that the federal government could shut down if Congress cannot resolve the current budget impasse.
"We hope that a deal can be struck in the short term," said Engler, adding that the roundtable is working "aggressively" to encourage Washington to resolve the nation's "unsustainable" fiscal position.
Engler said CEOs are more concerned about the federal budget than the outlook for monetary policy. The Federal Reserve has signaled that low interest rates and other stimulus measures will eventually have to be wound down, "so there's no shock there," he said.
The first-quarter survey does not reflect concerns about possible supply disruptions stemming from the natural disaster in Japan and subsequent nuclear crisis, according to Engler. The survey of 142 chief executives was conducted between February 28 and March 18.
While some automakers and technology companies have already reported shortfalls, Seidenberg said that it's too soon to say how events in Japan could impact corporate America.
"The survey was done before full impact of the tragedy in Japan came to bear," he said "But it's going to take a few more months for people to figure out the impact on business that may come from that."
CEOs are also worried about gas prices, which have jumped to an average of nearly $3.60 a gallon as of Wednesday from about $3.10 a gallon at the start of the year. Gas prices have been driven higher by oil prices, which have spiked on the recent political turmoil in the Middle East.
In addition to undermining consumer confidence, rising gas prices could translate to higher production and transport costs for companies, said Engler. But he said the spike in gas prices could spur increased investment in domestic oil production.
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