Nearly three in every five corporate finance executives are optimistic about economic growth this year in the United States, and half expect to boost capital spending because their businesses will have more revenue, according to a survey from TD Bank.
TD Bank, among the largest banks in Central Massachusetts, said the survey of financial leaders at mid-size and large companies found a surge in optimism over last year, when just 46 percent were hopeful about economic growth. In addition, 15 percent more expect their companies to add jobs this year.
Among finance officers in Massachusetts, there’s a higher level of optimism, the survey found. Eighty-seven percent of executives surveyed foresee increased revenue this year, and most also expect to boost capital spending for technology (67 percent said they will) and hiring (51 percent).
But at the same time, more than half of executives (52 percent) who have a moderate to large stockpile of cash holdings plan to hold on to that money for more than a year.
Nationally, the top areas for increased spending include technology (64 percent) existing facilities (42 percent) and hiring (40 percent).
“The increased appetite for capital investments confirms our view that businesses are finding ways to thrive in the ‘new normal’ economy,” Greg Braca, executive vice president and head of corporate and specialty banking at TD Bank, said in a statement. “Increased spending at the corporate level bodes well for the long-term acceleration of growth and (mergers and acquisitions), with companies recognizing that now is a great time to make a move before interest rates creep higher.”
