| Topic: |
Politics > Politics-USA |
| User: |
"Your Special Friend" |
| Date: |
30 Sep 2003 08:15:08 PM |
| Object: |
Survey says CFOs optimistic about the economy |
http://www.bizjournals.com/sanantonio/stories/2003/09/29/daily14.html?jst=m_ln_hl
Survey says CFOs optimistic about the economy
Chief financial officers of U.S. companies are optimistic about the
U.S. economy and their own companies' prospects and they expect the
U.S. recovery to become more robust, according to the September "CFO
Outlook Survey," conducted by Financial Executives International and
Duke University's Fuqua School of Business.
Three out of four CFOs (74 percent) are more optimistic about the
economy this quarter than they were the prior quarter and only 8
percent are less optimistic, the survey found. This is the highest
level of optimism recorded in more than a year.
The CFO optimism about the economy is reflected in higher expectations
about the gross domestic product, with average expectation of 2.9
percent over the coming year (median expected increase of 3 percent).
This prediction is higher than any GDP prediction during the past
three quarters.
CFOs also are more optimistic about their own companies than they have
been since this measurement began in June 2002. Two-thirds are more
optimistic about their companies' financial prospects this quarter.
Eighty-five percent of the surveyed CFOs expect corporate earnings to
increase in the coming year, with an average increase of 16.9 percent
(median, 10 percent) over the next 12 months.
Revenue is expected to increase for 87 percent of firms, with an
average increase in revenue of 8.1 percent (median increase of 8
percent).
Capital spending, an important economic indicator, is expected to
increase by 9.0 percent in the coming year. That's a dramatic increase
over last quarter's expected rise of only 1.5 percent.
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