The Chief financial officers (CFOs) at some of North America’s largest corporations are feeling down about the immediate future of the economy.
Deloitte’s first quarter CFO Signals survey shows outlook for revenue, earnings, capital spending and domestic hiring all declined to the lowest level since 4Q 2012.
“One difference this quarter seems to be CFOs’ growing concern over how financial markets will react to unfavorable economic news and how consumers will react to volatile equity markets — and what longer-term effects will be on capital liquidity and consumer demand,” said Greg Dickinson, director, Deloitte LLP, who leads the survey.
The report suggests there is worry over depressed commodity prices while more CFOs this quarter believe US equity markets are undervalued than overvalued.
When examining the global economy only 9% of CFOs believe China’s economy is good, while 5% said Europe’s economy is good.
On a positive note, the US Labor Department’s non-farm payrolls report was released on Friday. That report shows 215,000 jobs were added in March.
The unemployment rate rose to 5% compared with 4.9 percent in February. But that was a positive indication, analysts said, since it was the increase in participation that mostly accounted for the increase rather than job losses.