DUKE University and CFO magazine survey forewarns dramatic business slowdown.
CFOs typically set the tone financially in meetings within a company. Sales executives talk about the customers, Purchasing talks about the suppliers, but the CFO usually sets the tone for what the economy and the financial numbers are going to do. It looks pretty gloomy based on the recently released DUKE University and CFO Magazine survey.
Given the possibility that the U.S. will go over the fiscal cliff, CFOs in the U.S. were less optimistic about the economy than in previous quarters. The survey also showed that weak consumer demand, the cost of health care and retaining skilled workers were all of top concern.
Chief Financial Officers of U.S. businesses say going over the “fiscal cliff” will lead to dramatic slowdowns in hiring and business spending in 2013 and will continue to hurt firms for years to come, according to a new survey by Duke University and CFO magazine.
“These concerns have led to a continued erosion of optimism about the U.S. economy,” said Kate O’Sullivan, editorial director at CFO Magazine. ”Optimism has fallen to 51 out of 100, down from 60 last spring, and even slightly below Europe. This is worrisome because historically reduced optimism foretells slower economic activity over the next year.”
We all know that economy is in trouble due to the huge fiscal debts that our government is racking up and the slow pace to resolve the issue politically. No matter what happens, we can be assured that our growth prospects for the next several quarters is going to take a hit.
Looks like it is time to dust of your “Cost Cutting Playbook”.