|Copyright:||Copyright Business Wire 2010|
|Source:||Business Wire, Inc.|
Survey Also Reveals Concern About Current Economy and Economic Growth Next Year
Of the 801 executives surveyed in the bank’s annual CFO Outlook, 47 percent said they expect their companies to hire additional employees next year, up from 28 percent who forecast hiring last year. Only 6 percent said they expect layoffs, compared with 9 percent last year. In addition, 64 percent of CFOs expect revenue growth in 2011, up from 61 percent last year.
“Despite the challenging economic climate, many CFOs have growing confidence that their companies have weathered the worst of the storm and are poised for expansion,” said
Financial executives gave the current economy a score of 47 out of 100, up slightly from last year’s score of 44 – the lowest in the 13-year history of the annual CFO Outlook. Despite that improvement, CFOs weren’t as optimistic about U.S. economic growth. Only 56 percent said they expect expansion in 2011, compared to the 66 percent of CFOs who forecast economic growth a year ago.
Other notable findings in the survey:
- When asked what will have the biggest impact on the economy in 2011, CFOs ranked healthcare reform No. 1 at 54 percent, followed by the budget deficit at 52 percent and the housing market at 43 percent.
- Related to the above, CFOs’ top financial concern by far is health care costs, followed by revenue growth and cash flow. The top concern last year was revenue growth.
- Only 27 percent of CFOs expect the cost of capital to increase, compared to last year when nearly half of CFOs expected a higher cost of capital.
- Executives at manufacturing companies generally were less positive about their sector than CFOs at services and commodities companies, which include construction, retail, transportation, finance, education, health care and food service businesses. Only 47 percent of manufacturing CFOs predicted expansion their sector vs. 58 percent of CFOs in other sectors.
Interviews were conducted from mid-September to late October. The margin of error is +/-4 percent. The full report will be available in January.
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