CFO Outlook Positive, but Energy, Inflation Worries Grow

11.05.2011
Finance executives at U.S. corporations remain optimistic about the next 12 months, as the large gains in the profits they expect balance out their concerns about energy cost rises and inflation. That's the conclusion of the quarterly "" by Baruch College's Zicklin School of Business and Financial Executives International, although the survey did detect a slight slippage in measurements of both optimism about U.S. economy, and optimism about their own companies, compared to last year's fourth quarter.

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CFO optimism about the economy dipped to 64.10 from 65.50 in the survey's index rating, for example, while optimism about their own companies fell slightly, to 72.00 from 73.00.

"The theme of CFO survey responses continues to be one of caution; they are generally confident in their businesses but watchful of what's ahead," John Elliott, dean of Baruch's business school said. "U.S. CFOs expressed modest declines in their optimism, while European sentiment continues to grow, narrowing the spread between the two regions."

Double-Digit Profit, Capex Growth

The double-digit growth in net income and in capital spending across the entire survey, he said, illustrate that "CFOs across the U.S. and Europe are confident in the future of their businesses."