The quarterly ief Financial Officer (CFO) Outlook Survey found that the business and economic confidence levels of chief financial officers in the U.S. are down slightly from 2011's first quarter survey results, while European Chief Financial Officers reported slightly higher confidence levels than they did in the first quarter. However, confidence levels in the U.S. still remain higher than those in Europe.
U.S. chief financial officers also showed a higher level of confidence in their own companies than European CFOs did, while those from both groups expect increases in net earnings, capital spending, technology spending, and revenue in the next twelve months. An increase in healthcare costs is expected by all, but a greater increase is expected in the US than in Europe.
Operations expansion is expected to occur closer to home, according to Chief Financial Officers across the board (72 percent of U.S.). They are planning to expand their operations to locations in North America, while 67 percent in Europe reported that they are planning to expand their operations to locations in Central or Western Europe.
Impacts of World Events are Still Expected to be Minimal: Chief Financial Officers reported that the impact of significant world events-debt issues, labor issues, political unrest, and natural disasters-has been minimal so far this year. Specifically regarding events in Japan, 75 percent reported that there was no direct impact.
Concerns about Inflation are Increasing: On a scale of one to five, 81 percent of U.S. CFOs and 69 percent of European CFOs rated their concerns about inflation at three or higher, and both groups expect increasing inflation over the next twelve months. All expect the price of oil to remain high in the next six months; however, the majority of chief financial officers are not adjusting their businesses to accommodate higher oil prices.
US Economic Recovery is Impending: The majority of U.S. CFOs feel that the US is nearing economic recovery. An additional 32 percent felt that economic recovery would occur in the first half of 2012. They are not adding additional work hours in preparation for compliance with the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Participation in Social Media is Still Low: 32 percent of U.S. respondents and 49 percent of European respondents reported that their companies do not use social media at all. 52 percent of U.S. Chief Financial Officers and 65 percent of European CFOs said their companies do not monitor opinions about their businesses via social media outlets.
U.S. chief financial officers also showed a higher level of confidence in their own companies than European CFOs did, while those from both groups expect increases in net earnings, capital spending, technology spending, and revenue in the next twelve months. An increase in healthcare costs is expected by all, but a greater increase is expected in the US than in Europe.
Operations expansion is expected to occur closer to home, according to Chief Financial Officers across the board (72 percent of U.S.). They are planning to expand their operations to locations in North America, while 67 percent in Europe reported that they are planning to expand their operations to locations in Central or Western Europe.
Impacts of World Events are Still Expected to be Minimal: Chief Financial Officers reported that the impact of significant world events-debt issues, labor issues, political unrest, and natural disasters-has been minimal so far this year. Specifically regarding events in Japan, 75 percent reported that there was no direct impact.
Concerns about Inflation are Increasing: On a scale of one to five, 81 percent of U.S. CFOs and 69 percent of European CFOs rated their concerns about inflation at three or higher, and both groups expect increasing inflation over the next twelve months. All expect the price of oil to remain high in the next six months; however, the majority of chief financial officers are not adjusting their businesses to accommodate higher oil prices.
US Economic Recovery is Impending: The majority of U.S. CFOs feel that the US is nearing economic recovery. An additional 32 percent felt that economic recovery would occur in the first half of 2012. They are not adding additional work hours in preparation for compliance with the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Participation in Social Media is Still Low: 32 percent of U.S. respondents and 49 percent of European respondents reported that their companies do not use social media at all. 52 percent of U.S. Chief Financial Officers and 65 percent of European CFOs said their companies do not monitor opinions about their businesses via social media outlets.
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