CHERRY HILL, N.J.
May 8, 2014
/PRNewswire/ -- A new survey from TD Bank, America's Most Convenient Bank
, reveals a surge in both economic optimism and capital spending plans among middle market and large corporate finance executives.
According to TD Bank's fourth Annual CFO Survey, nearly 60% of respondents are optimistic about U.S. economic growth this year, compared to 46% last year, and half expect to increase capital expenditures due to stronger revenue growth. Among the CFOs surveyed, the top areas for increased spending include technology (64%), existing facilities (42%) and workforce hiring (40%) in 2014. The percentage of respondents who intend to hire additional workers rose significantly over 2013–nearly a 15% jump.
"The increased appetite for capital investments confirms our view that businesses are finding ways to thrive in the 'new normal' economy," said
, Executive Vice President and Head of Corporate & Specialty Banking at TD Bank. "Increased spending at the corporate level bodes well for the long-term acceleration of growth and M&A, with companies recognizing that now is a great time to make a move before interest rates creep higher."
Middle Market Sees More Potential for Growth
Eighty-one percent of respondents expect their companies' revenues to increase in 2014, a 10% increase from 2013, with the majority anticipating relatively small increases in the 1–9 % range. Middle market finance executives reported they're more optimistic than their corporate counterparts with regard to revenue increases:
- 17% of middle market CFOs anticipated a revenue increase of 10-14%, compared with 10% of corporate CFOs
- 16% of middle market CFOs anticipated a revenue increase of 15% or more, compared with 14% of corporate CFOs
More than two-thirds of respondents currently have cash holdings stockpiled, but less than a quarter intend to put the funds to use as part of their business strategy this year. Most companies plan to hold the cash into next year at least.