CFO Signals™: 2014 Q2 Results
A mixed bag of sentiment and expectations
For the last two quarters, there has been a significant disconnect between CFOs’ sentiment and their expectations. On one hand, CFOs have been feeling increasingly positive about the status and trajectories of major world economies and they have been mostly optimistic about their companies’ prospects looking forward. On the other hand, their expectations for year-over-year sales, earnings, investment, and hiring have been relatively low and, in some cases, declining. This quarter’s findings add little clarity.
CFOs’ steady optimism regarding their companies’ prospects and their improving year-over-year growth expectations seem to reflect growing confidence that conditions are stabilizing. But CFOs’ weakening perceptions of major economies, lower growth expectations among U.S. CFOs and faltering optimism among Manufacturing CFOs suggest some unsettling undercurrents.