Attitudes Toward Short-Term Global Economy Become More Optimistic
CFO’s Quarterly Global Confidence Survey Shows Decreasing Concern From Senior Financial Executives
March 13, 2002
NEW YORK, NEW YORK – CFO’s Quarterly Global Confidence Survey reveals that 30% of finance chiefs plan to increase capital spending next quarter, while 40% intend to do so over the next fiscal year. The survey, appearing in the March issue of CFO magazine, reports 33% of the respondents are either confident or very optimistic about the domestic economy over the next year, a 22 percent rise over last quarter.
The newly found assurance may be tied to the confidence CFOs place in their companies’ second-quarter sales and profit performance. A whopping 70% say Q2 2002 profits will increase compared with those of Q2 2001. Fifty-nine percent predict a rise in second-quarter revenues over last year’s mark.
The top four concerns this quarter are the economic downturn, increasing competition, lack of capital, and an increase in the cost of capital.
Apparently, time heals all confidence problems. An astonishing 91% of the CFOs polled say they are either confident or very optimistic about the U.S. economy over the next five years; 75% feel the same way about long-term global prospects, which is a 10 percentage point rise over last year.
More information from CFO’s Quarterly Global Confidence Survey can be found at www.cfo.com.