CFO Signals™: 2016 Q3
Tenor of worldwide geopolitics creating concerns
Against a tumultuous backdrop, CFOs’ sentiment and expectations seem reasonably optimistic this quarter—despite expectations for sales and earnings that are still near their survey lows. But the rapid, sharp drop in CFO sentiment that occurred when equity markets got pummeled to start 1Q16 may indicate that CFOs’ optimism is somewhat fragile.
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For many quarters, and especially over the last few, surveyed CFOs have been citing volatility and uncertainty among their most worrisome risks. Our 1Q16 survey indicated faltering CFO confidence in the North American economy amid concerns that economic stagnation and equity market struggles would hurt liquidity and consumer demand.
Last quarter’s economic assessments were only slightly better. But equity markets and consumer confidence had improved substantially, and that seemed to fuel higher growth expectations and bolster CFOs’ confidence in their own companies’ prospects.
CFOs have faced a barrage of domestic and global developments that have understandably led to decidedly mixed assessments this quarter. Findings suggest all eyes are on the US elections, with the vast majority of CFOs expecting the outcome to substantially impact their company’s future performance.
Download the report to read the details or the executive summary to view the highlights.