US CEOs say Iraq war may hurt economy

New York, Feb 24: The nation's most powerful corporate executives said looming war threats and terror scares could put a damper on the economy this year, but while some companies will delay spending on goods and equipment because of political uncertainty, most said they are not making significant changes to their business plans. Leaders of some of the nation's biggest companies said political tensions and uncertainty were the primary reason economic growth would be suppressed this year.

But if those potential threats to the economy are alleviated, growth in the United States will probably accelerate, the executives said during a meeting of the Business Council of chief executives in Florida.

The government has raised its terror threat level and troops are massing in the Middle East. But many company leaders say they are making few, if any, changes to their overall business strategy to account for the risk of war or other contingencies.

Franklin Raines, chairman and chief executive of housing finance leader Fannie Mae , downplayed the political concerns and said most companies were not substantially holding back spending or altering their business plans. Bureau Report