The U.S. economy is "stuck in neutral" and not likely to get in gear within the next six months, according to a survey of corporate CEOs released Monday.
The report from the Business Roundtable said that the group expects to see lower sales over the next six months and plans to keep hiring at roughly the same pace over the same period.
They also see little pickup in capital spending, which has slumped this year, creating a headwind for the economy.
The latest survey extends the lackluster outlook that CEOs have been reporting for the past year.
And the group places much of the blame for slow growth on Washington.
"The continued lack of action on an aggressive pro-growth policy agenda that includes tax reform, trade expansion and a smarter approach to federal regulation contributes to an economy that continues to perform below its potential," said Caterpillar CEO Doug Oberhelman, the group's chairman, in a statement.
The groups's latest survey finds that expectations for sales over the next six months declined by 9.3 points from a similar survey taken three months ago, while expectations for hiring declined by 3.4 points. Plans for capital spending ticked up slightly by 0.8 point compared with the second-quarter survey.