Finance chiefs took a decidedly gloomy turn in September, as optimism levels and spending plans declined and hiring plans remained flat. Still, the numbers remain in positive territory and do not indicate that CFOs are retrenching due to fears of a double-dip recession. In the context of weak macroecomic numbers and concerns about Europe, finance […]
Job creation in May fell far short of expectations, with new hiring increasing at a rate less than one-third of the consensus forecast. The job numbers are notoriously noisy, leaving many to wonder whether the disappointing numbers in May were the result of a confluence of temporary factors or the start of a negative trend. […]
The U.S. economy is experiencing the equivalent of a sunny Spring day, with much promise and a hopeful outlook. However, dark clouds related to employment and inflation lurk on the horizon, causing some anxiety about the longer term economic outlook.
Chief financial officers are becoming more optimistic as we enter 2011. The 481 U.S. CFOs that we recently surveyed rate their optimism about the U.S. economy at 59 on a scale from 0 to 100, up from 49 last quarter. This is the highest reading of the Business Optimism Index since September 2007, and nearly up to the long-run average of 60, indicating that the economy should improve in 2011.
In spite of ongoing financial problems in Europe and an oil crisis in the Gulf of Mexico, U.S. financial executives believe that prospects for their firms continue to improve – though slowly. The 535 U.S. CFOs that we recently surveyed rated their optimism about the U.S. economy at 57.5 on a scale from 0 to 100, up from 55.5 last quarter. This is the highest reading of the Business Optimism Index since September 2007, indicating that the economy should continue to improve. We quickly add, however, that the Index still remains below the long-run average of 60.
Finally, some good news. We recently surveyed CFOs of 620 companies in the U.S. and nearly 800 in Europe and Asia and found some encouraging signs. U.S. finance chiefs are finally loosening the purse strings: capital spending is expected to rise 9 percent, and tech spending, R&D, and advertising should all increase by about 4 percent. These are the largest expected increases in several years and indicate that the business sector has bottomed out and is improving. As further evidence, public U.S. companies expect earnings to increase by 14 percent.
We recently surveyed CFOs of 567 companies in the U.S. and nearly 900 in Europe and Asia. The economic outlook of these finance chiefs has improved somewhat, but the fledgling recovery in the West is threatened by a bleak employment outlook and credit markets that are still tight, especially for small firms. The outlook in Asia is stonger, with few major threats. Around the world, optimism has improved from recession lows but still remains below its long-run average.
We recently surveyed CFOs of 650 companies in the U.S. and nearly 900 in Europe and Asia. The economic outlook of these finance chiefs is improving relative to what we heard last quarter. CFO optimism about the macro economy has improved around the world, though optimism still remains below its long-run average. In the U.S., […]
We recently surveyed CFOs of 540 companies in the US, and nearly 800 in Europe and Asia, to gauge the status of credit markets and the world economy. About one quarter of companies has been severely impacted by tight credit markets, and another third has been moderately affected. These financially constrained companies are in a […]
The weak get weaker: Corporate liquidity, asset sales, and the extensive use of bank lines of credit at lower-rated firms
The credit crisis of late 2008 has spilled into 2009, and the lack of funding has hampered the ability of many corporations to make the ideal operating and investment choices. We recently completed an in-depth study of how tight credit is affecting corporate activity.