CFO Survey Pessimism Keeps Growing

13.10.2011
The market may still have its big rally days from time to time. But finance chiefs responding to the just-released third-quarter survey have turned decidedly negative, with executives who are pessimistic about their own companies' prospects now outnumbering the optimists. Their answers also indicate that they are also substantially cutting back growth and investment plans for year ahead because of global economic concerns.

The survey, now in its sixth quarter, showed that 29% of the 91 CFOs responding have a positive outlook, down from 40% in Q2 and 60% in . The percentage of those expressing less optimism shot up to 53% from 32%.

Interestingly, though, 52% answered one question by saying they would be willing to personally contribute to government success --- in the vein of Warren Buffett's proposals --- by accepting a rise in their personal income tax rate as a way of reducing the deficit on a comprehensive basis.

"On one hand, it's a bit surprising that about half of the CFOs surveyed are willing to go along with an increase to their personal income tax rate since they are known for being fiscal conservatives," Greg Dickinson who leads the Deloitte CFO Signals survey, said in a press release explaining the survey results. "Our research has already shown that they very much favor spending cuts over tax increases. "But on the other hand, we also know that CFOs are pragmatic problem solvers who are used to finding comprehensive solutions."

The CFO Signals survey, conducted over two weekend ending Aug. 26, focused on executives of companies having more than $1 billion in annual sales, 75% of them public. Each quarter the survey covers five areas: finance careers, organization, and company, industry and overall economic issues.

( corporate services organization found a similar negative turn in views about business conditions earlier this week.)