CFOs bearish on economic outlook
Optimism is in short supply among finance heads on both sides of the Atlantic
CFOs in Europe and the US are pessimistic about the economic outlook,
according to a quarterly survey of finance heads.
Over half the US CFOs questioned thought their economy was in recession and
confidence among European CFOs was at a five-year low, it was reported in the
Financial
Times.
The number of CFOs in the US that were pessimistic about prospects for their
economy outnumbered those who were optimistic by nine to one, the biggest margin
since 2001. In Europe the margin was slightly smaller at six to one.
Of the 1,007 CFOs that were interviewed across various regions, one third
said that the volatility in the credit markets had affected their businesses.
But despite the subprime-fuelled market woes, US CFOs were still expecting
earnings growth to rise at about the same level as in the previous quarter,
though European finance chiefs had lowered their expectations.
Asian CFOs were more confident, predicting much higher levels of growth and
employment.