Top US CEOs Focus on the Economy, But Face Doubts About Trump's Commercial Fights

Bloomberg News / Landov

Numbers: CEOs of America's largest companies are still optimistic about the economy, but are more reluctant to commit to big investments until they realize how the Trump White House's commercial fights have place.

It's according to the Business Roundtable. The lobby group said the CEO's economic outlook index dropped to 111.3 in the third quarter, up from 111.1 in the spring.

This is the fifth highest estimate in history for 16 years, well above the historical average of 81.6.

What happened: Business leaders predict sales will continue to rise as a measure of forward sales has reached its second highest level since 2011.

However, hiring and investment projects were not as strong as in the previous quarter. For example, nearly two-thirds of CEOs said that recently imposed tariffs on steel products and Chinese products abroad would have a "moderate or significant negative effect" on their investment plans.

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CEO Jamie Dimon, who is also chair of the roundtable, said China has yet to retaliate against US companies. While some institutions in China could "slam" this business or that, according to Dimon, the government told them they did not plan to separate anyone.

"They would prefer to negotiate," said Dimon during a conference call. "They would rather not make things worse."

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The roundtable predicts that the US economy will grow at a rate of 2.8% over the year, a notch above is an earlier forecast. The group represents the largest US companies that collectively employ 15 million people and generate annual sales of $ 7.5 trillion.

Read also: The economy continues to pump, but now the Fed wants to let a little air escape

Big picture: The economy accelerated in the spring, rose sharply during the summer and went into freefall. Surveys by groups such as the Round Table or the Chief Lobby Group for Small Businesses, the National Federation of Independent Industry, show that business people are very optimistic.

Lily: Small business owners give record optimism to Trump's economic policies

What is it that they say ?: "This survey shows how tax reform and regulatory easing continue to strengthen the economy," said group president Joshua Bolten. "However, current trade policies and uncertainties about future trade policies are having negative effects, especially on capital investments."

Lily: Returnee profits total $ 465 billion after Trump's tax cuts