This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Deloitte CFO Signals™ Survey: Despite Greater Optimism, CFOs At America's Largest Companies Still Fear Stagnation, Public Policy Obstacles

NEW YORK, March 25, 2013 /PRNewswire/ -- According to Deloitte's Q1 CFO Signals™ survey, the current state of the North American economies is both the main driver of growth – and the top impediment. Positive economic indicators appear to be boosting CFOs' optimism, but fears of further stagnation are restraining their expectations for 2013 sales and domestic hiring.



The quarterly survey, which tracks the thinking and actions of chief financial officers (CFOs) representing North American companies with collective annual revenues of more than $680bn, did indeed record greater optimism after two dismal quarters. Led by the U.S., net optimism (the difference between the percent of CFOs expressing rising and falling optimism) rose from -11 last quarter to +32 this quarter. Moreover, about half of CFOs expressed rising optimism, while just 20 percent expressed rising pessimism — a major shift.  The dominant cause may be a cyclical bias toward optimism at the beginning of the year.

"Every year we've done the survey, we've seen optimism peak in the first quarter only to decline considerably in the following quarters," said Sanford Cockrell III, national managing partner, CFO Program, Deloitte LLP. "For 2013 to be different, CFOs need some clarification on the public policy front and enough economic consistency and momentum to feel comfortable investing in growth."

Public policy uncertainty seems to be a major drag at this point. In fact, more than 90 percent of CFOs say that current and recent policy decisions/debates – ranging from debt ceiling and sequestration policies to possible defense cuts – are having at least some impact on companies' plans. It is tax policy that appears to be having the most substantial impact across industries, with some 75 percent of CFOs claiming at least some impact, and 40 percent indicating substantial or strong impacts.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs