The latest CFO survey from Duke University and CFO magazine finds little positive feeling as executives look ahead to the last quarter of the year. Even cuts in interest rates would likely have little effect, CFOs say. The "Optimism Index" Of U.S. CFOs fell to 52 from 56 in the summer quarter, based on a scale of 0-100. In the spring, the index was 59.
Twice the percentage of CFOs (44 percent) have "become more pessimistic" than are more optimistic, the survey found. That's not good news, warned one of the executives overseeing the survey. As a result, little improvement is expected on the jobs front.
CFOs expect to increase hiring by 1.5 percent and capital spending by 3.7 percent while earnings are forecast to grow by 6 percent. All those percentages fell from the previous quarter. “The drop in optimism is worrisome for the U.S. because historically it foretells slower economic activity over the next year,” said Kate O’Sullivan, editorial director at CFO Magazine. “Optimism is also falling in Asia and Europe.” Read more >>
Showing posts with label Chief financial officer. Show all posts
Showing posts with label Chief financial officer. Show all posts
Wednesday, September 12, 2012
Thursday, June 7, 2012
Pessimism About Economy Grows
Two major surveys of corporate financial executives this week show a stark contrast hiring outlook but are in agreement that optimism about economic growth is dropping. The American Institute of Certified Public Accountants, which maintains an office in Durham, found only 12 percent of chief executive officers, chief financial officers and other financial executives surveyed planned to expand payrolls over the next 12 months.
On Wednesday, a survey of CFOs from Duke University and CFO Magazine found that 60 percent of companies were planning to hire. Like the Duke-CFO survey, however, the AICPA report found a drop in optimism about economic growth. Its overall CPA Outlook Index declined by two points to 67 on a scale of 0-100 with 50 considered neutral. The index dropped for the first time after two quarters of growth.
“What we're seeing is the same ‘two steps forward, one step back’ cycle we encountered last year,” said Arleen Thomas, the AICPA’s senior vice president for management accounting. “There's no question survey takers have grown more pessimistic about the U.S. economy, and with expectations muted for profit, revenue and employment growth, there appear to be few catalysts to change that view.” Read more >>
On Wednesday, a survey of CFOs from Duke University and CFO Magazine found that 60 percent of companies were planning to hire. Like the Duke-CFO survey, however, the AICPA report found a drop in optimism about economic growth. Its overall CPA Outlook Index declined by two points to 67 on a scale of 0-100 with 50 considered neutral. The index dropped for the first time after two quarters of growth.
“What we're seeing is the same ‘two steps forward, one step back’ cycle we encountered last year,” said Arleen Thomas, the AICPA’s senior vice president for management accounting. “There's no question survey takers have grown more pessimistic about the U.S. economy, and with expectations muted for profit, revenue and employment growth, there appear to be few catalysts to change that view.” Read more >>
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