Survey: CFOs More Optimistic
Financial decision makers at businesses across the United States are feeling more optimistic about the second half of this year, despite concerns about health care costs, according to a new survey.
The “CFO Quarterly Global Outlook Survey,” conducted by Financial Executives International (FEI) and Baruch College's Zicklin School of Business in New York found that optimism among chief financial officers at public and private businesses about their own companies increased three points on a scale from 0 to 100, to 70.7 last quarter. Confidence in the U.S. economy also rose from 58.5 in the first quarter, to 61.2, with 49 percent of respondents saying they believe the country is in the middle of an economy recovery.
CFOs expect an 11-percent increase in net earnings and an 8-percent jump in revenue over the next 12 months, the survey found. They also plan to increase technology spending by 7 percent, but also expect to see a 10-percent increase in health care-related costs. Sixty-one percent said they plan to hire within the next six months and employee compensation will increase 3.5 percent.
Weighing in on international economies, CFOs polled were more confident that the global economy will improve. Meanwhile, 73 percent said they don’t believe their businesses will be affected by slowdowns in China and India. However, U.S. businesses seem to be more vulnerable to European economies, with 78 percent of respondents rating their concern about the fate of the Eurozone at a three or higher on a scale of one to five, with one being “not concerned.” They remained not confident that the European economy will recover soon, with 44 percent saying they didn’t expect conditions there to improve until at least 2015.
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