Campbell Harvey, a professor of finance at Duke University, says the inverted yield curve is calling for a hard landing in the ‘Craman countdown.’
New Deloitte data shows North American corporate finance chiefs expect regional economies around the world to languish over the next year.
The global consulting and risk management firm released Thursday the results of its quarterly CFO Signals survey, which found respondents were more pessimistic about 2024 in the second quarter of this year than in the first. Turns out I was looking.
Deloitte’s latest CFO Signals survey (Q2 2023) shows that top finance leaders are more pessimistic about the outlook for all regional economies around the world over the next 12 months. (image/image)
CFO outlook for the year ahead declined across all five regions: North America, Europe, China, South America and Asia ex-China. Their assessment of the North American economy in the next 12 months is the darkest, with just 34% of respondents expecting conditions to improve within a year, down from 54% in the previous quarter.
In addition, a majority (81%) of CFOs cite economic or financial market risk as their company’s top external concern, with geopolitics having been the number one concern for respondents over the past few years. outweighed the risk (57%). investigation.
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“CFOs are increasingly paying attention to the economic environment as they grapple with inflation and high interest rates,” Steve Garucci, Deloitte’s global and U.S. CFO program leader, told Fox Business. .
Federal Reserve Chairman Jerome Powell speaks during a press conference at the Federal Reserve in Washington, DC, May 3, 2023. (Saul Loeb/AFP via Getty Images/Getty Images)
“Trade disputes and Russia’s aggression against Ukraine were widely feared by CFOs throughout the last calendar year, but geopolitical issues are still commonly cited as risks,” he said. “But the bank shock and the Fed’s last rate hike may make CFOs more focused on the economy.”
The Deloitte survey also found that CFOs are being directed by their CEOs to focus on cost-cutting measures. About 33% of respondents said now is a good time to take risks, down from 40% in the first quarter. Few CFOs expressed optimism about their companies’ financial prospects.
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In another notable change, CFOs’ top internal risk concerns fell for the ninth straight quarter in talent and labor concerns, prioritizing execution risks to strategy and change.
In Deloitte’s nine quarterly surveys, CFOs have cited talent and labor concerns as the top concern within their companies, but the latest survey puts execution risk as the number one concern. (Joe Radle/Getty Images/Getty Images)
While 80% of respondents still cite talent as one of their top internal risks of concern, execution risk falls just short of the top spot at 81%, with CFOs doing well to execute on their strategic priorities. It has been shown to have some interest in doing
The survey also asked CFOs about their most important challenges in managing enterprise risk and regulatory compliance, with “regulatory changes or enhancements and working with regulators” cited by far as the top challenge. rice field.
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“Companies are navigating a complex economic and regulatory environment, with developments in both areas weighing on their business and economic prospects,” Gallucci explained.
