Tag Archives: CFO and CEO Confidence

April 2019 Duke/CFO Global Business Outlook Survey – Notable Excerpts

On April 17, 2019 the April 2019 Duke/CFO Global Business Outlook was released.  It contains a variety of statistics regarding how CFOs view business and economic conditions.

In this CFO survey press release, I found the following to be the most notable excerpts – although I don’t necessarily agree with them:

Sixty-seven percent of U.S. CFOs believe that the U.S. will be in recession by the third quarter of 2020, and 84 percent believe that a recession will have begun by the first quarter of 2021. The survey found 38 percent of CFOs predicting recession by the first quarter of 2020.

also:

The survey asked the CFOs which economic variables will provide the most accurate indication that their own firms are experiencing a slow-down. Almost half (47 percent) of CFOs said they consider GDP growth to be one of the three most important indicators of their own firm’s fortunes. Consumer spending (39 percent), commodity prices (31 percent) and interest rates (29 percent) were also highly ranked indicators.

also:

CFOs expect their capital spending and revenue to increase by 5 percent over the next 12 months. CFOs predict hiring to increase by 2 percent and wages to grow by 3 percent.

The CFO survey contains two Optimism Index charts, with the bottom chart showing U.S. Optimism (with regard to the economy) at 65, as seen below:

Duke CFO Optimism chart

It should be interesting to see how well the CFOs predict business and economic conditions going forward.   I discussed past various aspects of this, and the importance of these predictions, in the July 9, 2010 post titled “The Business Environment”.

(past posts on CEO and CFO surveys can be found under the “CFO and CEO Confidence” tag)

_____

I post various economic forecasts because I believe they should be carefully monitored.  However, as those familiar with this site are aware, I do not necessarily agree with many of the consensus estimates and much of the commentary in these forecast surveys.

_____

The Special Note summarizes my overall thoughts about our economic situation

SPX at 2900.45 as this post is written

CEO Confidence Surveys 1Q 2019 – Notable Excerpts

On April 4, 2019, The Conference Board released the 1st Quarter Measure Of CEO Confidence.   The overall measure of CEO Confidence was at 43, up from 42 in the fourth quarter. [note:  a reading of more than 50 points reflects more positive than negative responses]

Notable excerpts from this April 4, 2019 Press Release include:

CEOs remain pessimistic about current economic conditions, with just 14 percent saying conditions are better compared to six months ago, down from 21 percent last quarter. Meanwhile, about 46 percent say conditions are worse, up from 39 percent in Q4 2018. CEOs were also more negative about current conditions in their own industries compared to six months ago. Currently, just 12 percent say conditions are better, down from 21 percent last quarter. However, those who say conditions have worsened rose moderately, from 35 percent last quarter to 37 percent.

Looking ahead, CEOs’ expectations regarding the economic outlook have improved slightly from last quarter. Some 14 percent now expect economic conditions to improve over the next six months, up from 12 percent in the fourth quarter. Meanwhile, about 42 percent expect economic conditions will worsen, down from 52 percent last quarter. CEOs’ expectations regarding short-term prospects in their own industries over the next six months were also moderately less pessimistic. Now, 19 percent anticipate an improvement in conditions, up from 14 percent last quarter. Moreover, 37 percent expect conditions will worsen, down from 44 percent in the fourth quarter.

Last month, the Business Roundtable also released its CEO Economic Outlook Survey for the 1st Quarter of 2019.   Notable excerpts from the March 19 release, titled “Business Roundtable CEO Economic Outlook Index Softens, Remains Above Historical Average“:

The CEO Economic Outlook Index decreased to 95.2 in the first quarter of 2019, a decrease of 9.2 points from the previous quarter. Despite this decrease, the Index surpassed its historical average of 82.4. This marks the ninth consecutive quarter where the Index has exceeded the historical average, signaling a continued positive direction for the U.S. economy.

also:

In their second estimate of 2019 U.S. GDP growth, CEOs projected 2.5 percent growth for the year, down from their 2.7 percent estimate in the previous quarter.

Additional details can be seen in the sources mentioned above.

_____

I post various economic forecasts because I believe they should be carefully monitored.  However, as those familiar with this site are aware, I do not necessarily agree with many of the consensus estimates and much of the commentary in these forecast surveys.

_____

The Special Note summarizes my overall thoughts about our economic situation

SPX at 2895.77 as this post is written

CEO Confidence Surveys 4Q 2018 – Notable Excerpts

On January 3, 2019, The Conference Board released the 4th Quarter Measure Of CEO Confidence.   The overall measure of CEO Confidence was at 42, down from 55 in the third quarter. [note:  a reading of more than 50 points reflects more positive than negative responses]

Notable excerpts from this January 3, 2019 Press Release include:

CEOs’ assessment of current economic conditions turned pessimistic in the fourth quarter, with only 21 percent saying conditions are better compared to six months ago, down from 49 percent last quarter. Meanwhile, about 39 percent say conditions are worse, up from less than 8 percent in the prior quarter. CEOs were also much more negative about current conditions in their own industries compared to six months ago. Now, just 21 percent say conditions are better, down from 31 percent last quarter, while those who say conditions have worsened rose to 35 percent, up from 25 percent last quarter.

Looking ahead, CEOs’ expectations regarding the economic outlook have also turned negative. Now, just 12 percent expect economic conditions to improve over the next six months, down from 23 percent in the third quarter. Meanwhile, about 54 percent expect economic conditions will worsen, compared to 22 percent last quarter. CEOs’ expectations regarding short-term prospects in their own industries over the next six months were also more pessimistic. Now, only 14 percent anticipate an improvement in conditions, down from 22 percent last quarter, while 44 percent expect conditions to worsen, up from 19 percent in the third quarter.

Last month, the Business Roundtable also released its CEO Economic Outlook Survey for the 4th Quarter of 2018.   Notable excerpts from the December 7 release, titled “Business Roundtable CEO Economic Outlook Remains Strong“:

Declining 4.9 points from 109.3 in the third quarter of 2018, the Q4 2018 CEO Economic Outlook Index of 104.4 ranks among the top 10 percent of all readings in the survey’s 16-year history and is well above the historical average of 82.1. This is the eighth straight quarter where the Index has exceeded its historical average, signaling a continued positive direction for the U.S. economy.

also:

In their first estimate of 2019 U.S. GDP growth, CEOs projected 2.7 percent growth for the year ahead.

Additional details can be seen in the sources mentioned above.

_____

I post various economic forecasts because I believe they should be carefully monitored.  However, as those familiar with this site are aware, I do not necessarily agree with many of the consensus estimates and much of the commentary in these forecast surveys.

_____

The Special Note summarizes my overall thoughts about our economic situation

SPX at 2584.96 as this post is written

December 2018 Duke/CFO Global Business Outlook Survey – Notable Excerpts

On December 12, 2018 the December 2018 Duke/CFO Global Business Outlook was released.  It contains a variety of statistics regarding how CFOs view business and economic conditions.

In this CFO survey press release, I found the following to be the most notable excerpts – although I don’t necessarily agree with them:

Nearly half (48.6 percent) of U.S. CFOs believe that the nation’s economy will be in recession by the end of 2019, and 82 percent believe that a recession will have begun by the end of 2020. 

also:

In 2019, CFOs expect sub-3% growth for the U.S. economy, with accompanying capital spending and employment growth of about 3 percent. 

also:

Moreover, their forecasts are skewed to the downside, with a one-in-ten chance that annual real growth will be a meager 0.6 percent. In this worst-case scenario, CFOs would expect their capital spending to fall by 1.3 percent and for hiring to remain flat.

The CFO survey contains two Optimism Index charts, with the bottom chart showing U.S. Optimism (with regard to the economy) at 66, as seen below:

CFO Optimism

It should be interesting to see how well the CFOs predict business and economic conditions going forward.   I discussed past various aspects of this, and the importance of these predictions, in the July 9, 2010 post titled “The Business Environment”.

(past posts on CEO and CFO surveys can be found under the “CFO and CEO Confidence” tag)

_____

I post various economic forecasts because I believe they should be carefully monitored.  However, as those familiar with this site are aware, I do not necessarily agree with many of the consensus estimates and much of the commentary in these forecast surveys.

_____

The Special Note summarizes my overall thoughts about our economic situation

SPX at 2664.75 as this post is written

CEO Confidence Surveys 3Q 2018 – Notable Excerpts

On October 4, 2018, The Conference Board released the 3rd Quarter Measure Of CEO Confidence.   The overall measure of CEO Confidence was at 55, down from 63 in the second quarter. [note:  a reading of more than 50 points reflects more positive than negative responses]

Notable excerpts from this October 4 Press Release include:

CEOs’ assessment of current economic conditions is less positive, with 49 percent saying conditions are better compared to six months ago, down from 74 percent last quarter. However, 43 percent of CEOs say conditions have remained the same, and only 8 percent say conditions are worse. CEOs were also less optimistic about current conditions in their own industries compared to six months ago. Now, about 31 percent say conditions are better compared to 51 percent last quarter.

Looking ahead, CEOs’ expectations regarding the economic outlook are also less optimistic than last quarter. Now, just 23 percent expect economic conditions to improve over the next six months, compared to 48 percent in the second quarter. About 22 percent expect economic conditions will worsen, compared to 14 percent last quarter. CEOs’ expectations regarding short-term prospects in their own industries over the next six months were also less optimistic. Now, only 22 percent anticipate an improvement in conditions, down from 42 percent last quarter. Some 19 percent expect conditions to worsen, up from just 9 percent in the second quarter.

Last month, The Business Roundtable also released its CEO Economic Outlook Survey for the 3rd Quarter of 2018.   Notable excerpts from the release, titled “Business Roundtable CEO Economic Outlook Index Remains Strong, Declines Slightly in Q3“:

The Q3 2018 CEO Economic Outlook Index was 109.3, a decline of 1.8 points from 111.1 in the second quarter of 2018. At 109.3, the Q3 Index is the fifth-highest in the survey’s 16-year history and well above the historical average of 81.6. This is the seventh straight quarter where the Index has exceeded its historical average, signaling a continued positive direction for the U.S. economy.

also:

In their fourth estimate of 2018 U.S. GDP growth, CEOs projected 2.8 percent growth for the year, up slightly from their 2.7 percent estimate in the second quarter.

Additional details can be seen in the sources mentioned above.

_____

I post various economic forecasts because I believe they should be carefully monitored.  However, as those familiar with this site are aware, I do not necessarily agree with many of the consensus estimates and much of the commentary in these forecast surveys.

_____

The Special Note summarizes my overall thoughts about our economic situation

SPX at 2888.02 as this post is written

September 2018 Duke/CFO Global Business Outlook Survey – Notable Excerpts

On September 12, 2018 the September 2018 Duke/CFO Global Business Outlook was released.  It contains a variety of statistics regarding how CFOs view business and economic conditions.

In this CFO survey press release, I found the following to be the most notable excerpts – although I don’t necessarily agree with them:

The proportion of firms indicating they are having difficulty hiring and retaining qualified employees is at a two-decade high, with 53 percent of CFOs calling it a top four concern. That’s up sharply from the 41 percent who said the same thing last quarter.  “The tight labor market continues to put upward pressure on wages,” said Chris Schmidt, senior editor at CFO Research. “Wage inflation is now a top five concern of U.S. CFOs.” Employees are willing to leave their jobs for greener pastures. Over the past 12 months, U.S. CFOs report they had to replace 14 percent of their workforces, compared to 13 percent turnover in 2016.  Among companies that list hiring as a top concern, 56 percent have increased salaries to improve their chances of hiring and retaining workers; 31 percent have increased HR budgets to better advertise positions; 29 percent have increased vacation or flex hours; and 21 percent have improved health care benefits.

also:

The Optimism Index about the U.S. economy declined to 70 this quarter, compared to an all-time high of 71 last quarter, on a 100-point scale. CFO optimism about their own firms’ financial prospects increased to 71.4, the highest level since 2007. Optimism fell in Africa, Europe, and Latin America and held steady in Asia. The survey’s CFO Optimism Index is an accurate predictor of future hiring and overall GDP growth.

The CFO survey contains two Optimism Index charts, with the bottom chart showing U.S. Optimism (with regard to the economy) at 70, as seen below:

Duke CFO Optimism

It should be interesting to see how well the CFOs predict business and economic conditions going forward.   I discussed past various aspects of this, and the importance of these predictions, in the July 9, 2010 post titled “The Business Environment”.

(past posts on CEO and CFO surveys can be found under the “CFO and CEO Confidence” tag)

_____

I post various economic forecasts because I believe they should be carefully monitored.  However, as those familiar with this site are aware, I do not necessarily agree with many of the consensus estimates and much of the commentary in these forecast surveys.

_____

The Special Note summarizes my overall thoughts about our economic situation

SPX at 2893.98 as this post is written

CEO Confidence Surveys 2Q 2018 – Notable Excerpts

On July 5, 2018, The Conference Board released the 2nd Quarter Measure Of CEO Confidence.   The overall measure of CEO Confidence was at 63, down from 65 in the first quarter. [note:  a reading of more than 50 points reflects more positive than negative responses]

Notable excerpts from this July 5 Press Release include:

CEOs’ assessment of current economic conditions was about the same as in the first quarter of 2018, with 74 percent saying conditions are better compared to six months ago. CEO sentiment was also virtually unchanged regarding the assessment of current conditions in their own industries, with about 51 percent saying conditions are better than six months ago.

Looking ahead, however, CEOs’ expectations regarding the economic outlook are much less optimistic than last quarter. Now, just 48 percent expect economic conditions to improve over the next six months, compared to 63 percent in the second quarter. CEOs’ expectations regarding short-term prospects in their own industries over the next six months were relatively flat, with only 42 percent anticipating an improvement in conditions.

Last month, The Business Roundtable also released its CEO Economic Outlook Survey for the 2nd Quarter of 2018.   Notable excerpts from the June 5, 2018 release, titled “Business Roundtable CEO Economic Outlook Index Eases, Remains Near Historic High“:

The Q2 2018 CEO Economic Outlook Index — a composite of CEO expectations for sales and plans for capital spending and hiring over the next six months — fell to 111.1 in the second quarter of 2018, declining 7.5 points from 118.6 in the first quarter. While this is the first time the Index has declined in nearly two years, the Index remains well above its historical average of 81.2 for the sixth straight quarter. This signals a continued positive direction for the U.S. economy despite modest declines in all three components of the Index. The new survey also shows a CEO projection of 2.7 percent U.S. GDP growth in 2018, a small decrease from the 2.8 percent projection last quarter.

CEO plans for hiring dipped slightly to 95.5, down 3.0 points from the previous quarter. Plans for capital investment fell to 107.6, a decrease of 7.8 points from Q1 2018. Expectations for sales fell to 130.3, a decrease of 11.6 points from last quarter.

Additional details can be seen in the sources mentioned above.

_____

I post various economic forecasts because I believe they should be carefully monitored.  However, as those familiar with this site are aware, I do not necessarily agree with many of the consensus estimates and much of the commentary in these forecast surveys.

_____

The Special Note summarizes my overall thoughts about our economic situation

SPX at 2791.19 as this post is written

June 2018 Duke/CFO Global Business Outlook Survey – Notable Excerpts

On June 13, 2018 the June 2018 Duke/CFO Global Business Outlook was released.  It contains a variety of statistics regarding how CFOs view business and economic conditions.

In this CFO survey press release, I found the following to be the most notable excerpts – although I don’t necessarily agree with them:

The Optimism Index in the U.S. remained at an all-time high of 71 on a 100-point scale this quarter. Optimism fell in Africa, Asia, Europe, and Latin America. The survey’s CFO Optimism Index is an accurate predictor of future hiring and overall GDP growth.

“This increased U.S. optimism appears to have increased expectations for M&A activity,” Graham said. “More than 70 percent of CFOs expect more mergers and acquisitions to occur over the next year.”

also:

The proportion of firms indicating they are having difficulty hiring and retaining qualified employees remains near a two-decade high, with 41 percent of CFOs calling it a top concern. The typical U.S. firm says it plans to increase employment by a median 3 percent in 2018 and expects wages to increase 4 percent on average.

“The tight labor market continues to put upward pressure on wages,” said Chris Schmidt, senior editor at CFO Research. “Wage inflation is now a top five concern of U.S. CFOs.”

Wage growth should be strongest in the tech, transportation, and service/consulting industries. U.S. companies expect the prices of their products to increase by more than 3 percent over the next year.

The CFO survey contains two Optimism Index charts, with the bottom chart showing U.S. Optimism (with regard to the economy) at 71, as seen below:

Duke CFO Optimism chart

It should be interesting to see how well the CFOs predict business and economic conditions going forward.   I discussed past various aspects of this, and the importance of these predictions, in the July 9, 2010 post titled “The Business Environment”.

(past posts on CEO and CFO surveys can be found under the “CFO and CEO Confidence” tag)

_____

I post various economic forecasts because I believe they should be carefully monitored.  However, as those familiar with this site are aware, I do not necessarily agree with many of the consensus estimates and much of the commentary in these forecast surveys.

_____

The Special Note summarizes my overall thoughts about our economic situation

SPX at 2775.63 as this post is written

CEO Confidence Surveys 1Q 2018 – Notable Excerpts

On April 5, 2018, The Conference Board released the 1st Quarter Measure Of CEO Confidence.   The overall measure of CEO Confidence was at 65, up from 63 in the fourth quarter. [note:  a reading of more than 50 points reflects more positive than negative responses]

Notable excerpts from this April 5 Press Release include:

CEOs’ assessment of current economic conditions was slightly more positive, with 75 percent saying conditions are better compared to six months ago, up from 71 percent in the fourth quarter of last year. CEOs were also moderately more optimistic in their appraisal of current conditions in their own industries. Now, 51 percent say conditions in their own industries have improved, up from 49 percent last quarter.

Looking ahead, CEOs’ expectations regarding the short-term outlook was significantly better. Now, 63 percent expect economic conditions to improve over the next six months, compared to just 47 percent last quarter. CEOs, however, were only slightly more upbeat about short-term prospects in their own industries over the next six months, with 43 percent anticipating conditions will improve, versus 41 percent last quarter.

The Business Roundtable last month also released its CEO Economic Outlook Survey for the 1st Quarter of 2018.   Notable excerpts from the March 13, 2018 release, titled “Business Roundtable CEO Economic Outlook Index Reaches Highest Level in Survey’s 15-Year History“:

The Business Roundtable Q1 2018 CEO Economic Outlook Index – a composite of CEO projections for sales and plans for capital spending and hiring over the next six months – increased to 118.6 in the first quarter of 2018, the highest level since the survey began in the fourth quarter of 2002. The survey was conducted between February 7 and February 26, 2018. Results reflect renewed CEO optimism and confidence following passage of the Tax Cuts and Jobs Act, but do not capture effects of President Trump’s March 8, 2018, announcement of steel and aluminum tariffs.

The Q1 2018 Index exceeded its previous high point of 113 in 2011. The Index has significantly surpassed its historical average level of 81.2.

All three components of the Index reached record highs, signaling a positive direction for the U.S economy.

  • CEO plans for hiring rose to 98.5, up 22.8 from the previous quarter.
  • Plans for capital investment rose to 115.4, up 22.7 from Q4 2017.
  • Expectations for sales reached 141.9, an increase of 19.9 from the last quarter.

In their second estimate for GDP in 2018, CEOs project 2.8 percent GDP growth for the year, compared to the previous quarter’s estimate of 2.5 percent for the year.

Additional details can be seen in the sources mentioned above.

_____

I post various economic forecasts because I believe they should be carefully monitored.  However, as those familiar with this site are aware, I do not necessarily agree with many of the consensus estimates and much of the commentary in these forecast surveys.

_____

The Special Note summarizes my overall thoughts about our economic situation

SPX at 2662.84 as this post is written

March 2018 Duke/CFO Global Business Outlook Survey – Notable Excerpts

On March 7, 2018 the March 2018 Duke/CFO Global Business Outlook was released.  It contains a variety of statistics regarding how CFOs view business and economic conditions.

In this CFO survey, I found the following to be the most notable excerpts – although I don’t necessarily agree with them:

Forty-four percent of U.S. companies plan to increase wages more than they would have without tax reform. Thirty-eight percent plan to increase employment and 36 percent will increase domestic investment. Thirty-one percent will increase cash holdings. Among companies with defined benefit pensions, 28 percent will increase pension contributions.

also:

Due to tax reform, the effective (or average) tax rate for U.S. companies is expected to fall by about 5 percent, from 24 percent to 18.8 percent.

also:

The Optimism Index in the U.S. increased to 71 on a 100-point scale this quarter, an all-time high.

“The extremely high level of business optimism is tied to the recently passed corporate tax reform,” Graham said. “Our analysis of past results shows the CFO Optimism Index is an accurate predictor of future economic growth and hiring, therefore 2018 looks to be a very promising year.”

Optimism is up around the world, anticipating strong global economic conditions.

also:

The proportion of firms indicating they are having difficulty hiring and retaining qualified employees remains at a two-decade high, with 45 percent of CFOs calling it a top concern, up from 43 percent last quarter. The median U.S. firm says it plans to increase employment by a median 3 percent in 2018.

“The tight labor market continues to put upward pressure on wages,” said Chris Schmidt, senior editor at CFO Research. “Wage inflation is now listed near the top half dozen concerns of U.S. CFOs.”

The CFO survey contains two Optimism Index charts, with the bottom chart showing U.S. Optimism (with regard to the economy) at 71, as seen below:

Duke CFO Survey Optimism chart

It should be interesting to see how well the CFOs predict business and economic conditions going forward.   I discussed past various aspects of this, and the importance of these predictions, in the July 9, 2010 post titled “The Business Environment”.

(past posts on CEO and CFO surveys can be found under the “CFO and CEO Confidence” tag)

_____

I post various economic forecasts because I believe they should be carefully monitored.  However, as those familiar with this site are aware, I do not necessarily agree with many of the consensus estimates and much of the commentary in these forecast surveys.

_____

The Special Note summarizes my overall thoughts about our economic situation

SPX at 2735.50 as this post is written