CFOs largely believe the U.S. economy has entered a recession, according to a survey of U.S. corporate CFOs conducted by Financial Executives International and the Zicklin School of Business of Baruch College.
Of the 209 CFOs interviewed March 3, 41% said the U.S. is currently in recession and 32% believe it will go into recession in the next six months, the survey said. Only 18% did not believe the U.S. would have a recession in 2008. The CFOs believe both recession concerns and the decline in the U.S. dollar are affecting business.
While 34% reported that the weakness of the U.S. dollar has led to increased international sales, 51% have seen an increase in the costs of commodities and raw materials and 33% say their companies quarterly earnings have decreased, said a statement about the survey.
This quarters data points to a continued decline in optimism among CFOs, Michael P. Cangemi, FEI president and CEO, said in the statement. With the permeation of pessimism, the survey revealed two-thirds of companies identifying some type of cutbacks, specifically in the areas of layoffs and reduced hiring. It is now more important than ever for CFOs to identify efficiencies and conduct smart business.