Skip to content
THE TIMES USA
Menu
  • ABOUT
  • CONTACT
  • LIFESTYLE
  • NATIONAL NEWS
  • BUSINESS
  • INTERNATIONAL NEWS
  • TECHNOLOGY
  • PRICE OF BUSINESS SHOW AUDIOS
Menu

CFOs Warn of a Slowdown

Posted on May 6, 2019 by admin

Key takeaways

  • CFOs overwhelmingly expect a U.S. downturn by the end of 2020, with a slowdown seen as much more likely than a recession.
  • Their expectations for growth in revenue, earnings, hiring and wages declined (only capital expenditure rose); all metrics sit below their two-year averages.
  • Companies are using a variety of programs to promote diversity and inclusion; flexible work arrangements are the most common.

Why it matters to CFOs? 
Each quarter, CFO Signals tracks the thinking and actions of CFOs representing many of North America’s largest and most influential companies. Since 2010, the report has provided key insights into the business environment, company priorities and expectations, finance priorities and CFOs’ personal priorities.

Assessments of regional economies
CFOs’ perceptions of North America declined, with 80 percent rating current conditions as good (down from 88 percent) and 28 percent expecting better conditions in a year (same as last quarter). Perceptions of Europe declined, with 16 percent noting current conditions as good and only 8 percent expecting better conditions in a year; Their views of China’s economy slid, with 20 percent indicating current conditions are good and 16 percent expecting better conditions in a year.

Downturn planning
Nearly 85 percent of CFOs said they expect a U.S. downturn by the end of 2020, and they overwhelmingly expect a slowdown rather than a recession. Those expecting a downturn were most likely to cite U.S. trade policy, business and credit cycles, and the impacts of slowing growth in China and Europe on the U.S. economy. A minority indicated they have detailed defensive or opportunistic plans; most CFOs expect to take defensive actions, including reducing discretionary spending and limiting or reducing headcount.

Diversity and inclusion (D&I) strategy
The majority of CFOs cited a formal D&I strategy; about half said the strategy is known throughout their company and embedded in their talent brand. Eight of the nine D&I tactics, such as (including diversity metrics in internal reporting, providing training around unconscious bias, assigning D&I responsibility to a senior leader, and issuing companywide principles for D&I) presented were selected by at least 40 percent of CFOs. Implementation of flexible work arrangements was the most-selected tactic.

Key quotes
“This quarter, nearly three-fourths of respondents said they expect a deceleration of U.S. economic activity by the end of 2020, but only 15 percent expect an actual recession — meaning an extended decline in activity. While a slowdown is certainly better than a recession, CFOs’ own-company optimism remains at one of its lowest levels in the last three years.” – Sanford Cockrell III, US national managing partner and global leader, CFO Program, Deloitte LLP

“While two-thirds of CFOs said their organization has a formal D&I strategy, only 53 percent state that this is known throughout their company. This is an opportunity for organizations to not only develop a D&I strategy, but ensure that everyone in their organization is aware, engaged, and views it as a fundamental value in their culture.” – Terri Cooper, national chief inclusion officer, Deloitte LLP

Key metrics 
CFOs’ expectations for year-over-year revenue growth fell from 5.5 percent to 4.8 percent; their expectations for earnings growth slid from 7.3 percent to 7.1 percent; capital spending rose from 5.0 percent to 5.9 percent; and plans for hiring fell from 3.2 percent to 2.1 percent (all sit below their two-year averages). Their expectations for dividend growth declined from 4.5 percent to 3.9 percent, the lowest level since the fourth quarter of 2017.

Own-company prospects 
The net optimism index for CFOs sentiment on their own companies rebounded from last quarter’s dismal +3 to +16 — better, but is still the third-lowest level in three years. Thirty-two percent of CFOs expressed rising optimism (26 percent last quarter), and 16 percent declining optimism (23 percent last quarter).

Internal versus external risks 
CFOs voiced even stronger concerns about trade policy (especially U.S.-China policy) and continuing concerns about economic risks/slowdown and U.S. political turmoil. For internal risks, CFOs again expressed strong concerns related to talent and strategy execution. Other concerns such as achieving growth and managing costs continued to increase, as did worries related to adaptation, change, prioritization and overload.

Business focus for next year
CFOs indicated a bias toward revenue growth over cost reduction (51 percent versus 25 percent), investing cash over returning it (46 percent versus 19 percent), current offerings over new ones (40 percent versus 36 percent), and current geographies over new ones (64 percent versus 12 percent).

To see additional results from Deloitte’s first-quarter 2019 CFO Signals survey, download a copy at: http://www.deloitte.com/us/cfosignals2019Q1.

Methodology
Each quarter, CFO Signals tracks the thinking and actions of CFOs representing many of North America’s largest and most influential organizations. This report summarizes CFOs’ opinions in four areas: business environment; company priorities and expectations; finance priorities; and CFOs’ personal priorities.

The Deloitte CFO Signals survey for the first quarter of 2019 was conducted during the two-week period opening Feb. 11, 2019 and ending Feb. 22, 2019. A total of 158 CFOs responded. Sixty-nine percent of respondents were from public companies, and 84 percent were from companies with more than $1 billion in annual revenue.

For more information about Deloitte’s CFO Signals, or to inquire about participating in the survey, please contact NACFOSurvey@deloitte.com

About Deloitte
Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world’s most admired brands, including nearly 90 percent of the Fortune 500 and more than 5,000 private and middle market companies. Our people work across the industry sectors that drive and shape today’s marketplace to make an impact that matters — delivering measurable and lasting results that help reinforce public trust in our capital markets, inspire clients to see challenges as opportunities to transform and thrive, and help lead the way toward a stronger economy and a healthy society. Deloitte is proud to be part of the largest global professional services network serving our clients in the markets that are most important to them.

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the “Deloitte” name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member firms.

You Might Also Like...

  • 40 Percent of Malicious URLS Can Be Found on Good URLS

     Webroot, the Smarter Cybersecurity® company, revealed the results of the 2019 Webroot Threat Report, showcasing…

  • Ten Signs of Dysfunctional Business Culture

    A new report from Marsh & McLennan Companies (MMC), tapping the insights by WomenCorporateDirectors (WCD), reveals a…

  • How To Choose A Business Consultant

    By James J Talerico, Jr., Special for The Times USA For many business owners, choosing…

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

VIDEO: This Week’s Best of our Network

https://www.thetimesusa.com/wp-content/uploads/2023/12/10-Strategies-to-Ramp-Up-Your-New-Business.mp4

GDPR Compliance

USABR does not collect data on its visitors.  For more information visit: https://www.usabusinessradio.com/contact-us/

Contact

Contact articles@usabusinessradio.net for more information on articles on this site. BMuyco@usabusinessradio.net for all other information.

Recent Articles

  • 2024: How To Start a New Year Right and How To End 2023 on a High Note
  • Dealing With Change: Living Consciously Through Life Transitions
  • Pathway to Joy
  • Ten Proven Strategies to Boost Your Productivity
  • Hypnosis for Cognitive Rehabilitation After Brain Injury

The Secret to Making New Rich Books Work

The Secret to Making New Rich Books Work

Also in TTUSA

  • New Age of Digital Asset Exchange-Japan’s Largest Pioneer Blockchain Expansion
  • Ryan Dean Hoggan Shares: 5 Ways Venture Capital Funding Will Change in 2021
  • VIDEO: Decrypt Media Editor Looks at Legal Problems facing Coinbase
  • How to Find Time For Fun On Your Next Business Trip
  • A Closer Look at the Top Resolution for 2019

RSS The Daily Blaze

  • Media Insider on Why the News Industry Is Broken
  • A Radically Different Business Model That Transforms Businesses
  • That End of Year Meeting With Your Attorney
  • Climate Change ‘Studies’ Can’t Withstand Basic Scrutiny
  • Inside Look at the Scandalous “Endgame” Book on the Royals

The Leader in Business News

The Leader in Business News

RSS USA Business Radio

  • Auto Dealers Push Back Against Biden’s “Unrealistic” EV Mandates
  • Using an IRA To Buy Long Term Care Insurance
  • Discussing Risk Management With Your Attorney
  • Your Business Is a Tool – How Well Are You Maintaining It?
  • 10 Strategies to Ramp Up Your New Business

RSS USA Daily Times

  • Exclusive Interview: Send Pain Packing With This Phenomenal Tool
  • Are We Losing the Most Important Followers of All…. Our Kids??
  • Troubled Waters
  • Raise Your Awareness, Not Your Voice
  • How This Authentic Practice Can Improve Your Life

RSS USA Daily Chronicles.

  • Should You Consider Nootropics & Energy To Get Through the Chaos of the Holidays?
  • On the Passing of a Legal Trailblazer
  • The First Thing To Ask When Making a Life Change
  • Asia’s No. 1 Reputable Online Gambling Platform
  • Media Insider: Virtually All News – Both Left and Right – Are on “Team Trump”

RSS Price of Business

  • That End of Year Meeting With Your Attorney
  • 2024: How To Start a New Year Right and How To End 2023 on a High Note
  • Auto Dealers Push Back Against Biden’s “Unrealistic” EV Mandates
  • Media Insider on Why the News Industry Is Broken
  • Exclusive Interview: Send Pain Packing With This Phenomenal Tool

RSS US Daily Review

  • AI and the Future of Work
  • 7 Reasons To Invest in Waterside Homes Along Norfolk’s Inland Rivers
  • The Influence of Athletes in Video Games: Icons and Legends in Gaming
  • Tapping Into Your Unconscious To Land Your Dream Job
  • How Rethink Food Is Pioneering Sustainable and Equitable Food Systems in Urban Communities

PoB Digital Network

US Daily Review

USA Business Radio

USA Daily Chronicles

USA Daily Times

The Daily Blaze

The Times USA

Price of Business

© 2023 THE TIMES USA | Powered by Superbs Personal Blog theme