US corporate leaders are less optimistic about business outlook and employment amid a slowing economy, according to the Business Roundtable’s Q3 2023 CEO Economic Outlook Survey, released Tuesday. 

The report uses survey results to create a composite index of CEO plans for capital spending and employment over the next six months, as well as expectations for sales.

The index dipped to a reading of 72 for the current quarter, down a modest four points from the second quarter; it remains below its historic average of 84.

“With an economy that is slowing, not stalling, CEOs continue to moderate their plans and expectations for the next six months, particularly in employment,” Business Roundtable CEO Joshua Bolten said in a press statement. “While two-thirds of our companies intend for hiring to increase or stay the same, roughly a third expect to scale back.”

Meanwhile, the “plans for hiring” subindex decreased by 11 points to a value of 45, while the “expectations for sales” subindex fell by one point to a value of 103. However, the “plans for capital investment” subindex increased by one point to a value of 69.

Another finding in the report: CEOs project the US gross domestic product to grow 2.1% this year.

“While the US economy is resilient, it’s increasingly important for policymakers in Washington to work together with the business community to advance pro-growth policies for America,” said Business Roundtable Chair Mary Barra, chair and CEO of General Motors. “Business Roundtable is committed to working with Congress and the administration to build on the successes of recent bipartisan legislation to strengthen our economy.”

The survey includes responses from 143 CEOs and was conducted between Aug. 23 and Sept. 8.