According to a recent business outlook survey conducted by CFOs, nearly 50% of CFO's are more optimistic about the US economy than they were just last quarter. Many have plans to hire new workers, and develop new revenue streams. They are willing to spend more on capital expenditures, technology, & research-and-development and increase marketing and advertising spending.
On average, CFOs project a 2% increase in full-time domestic employment over the next 12 months, the largest rise since 2006. That increase would represent 3 million jobs, and should bring U.S. unemployment below 9% by the end of the year, according to John Graham, finance professor at Duke's Fuqua School of Business and director of the survey. CFOs in the service and technology sectors predict the most substantive workforce expansions, with anticipated increases of 10% and 9%, respectively.
With the majority believing that the economy is improving, many feel it will be a somewhat slower process than they would like. However most think it is better than a year ago and the potential for growth this year is welcomed by all.
According to the Bank of America's 2011 CFO Outlook survey, signs of stability and steady recovery indicate outright growth and a more robust turnaround.
Positive outlook mirrors recovery -
Additional signs of CFO optimism for 2011:
· 64% expect revenue growth
· 47% are planning to hire additional employees
· 55% expect profit margins to increase
· 33% will increase capital expenditures
Overall the economy is showing positive signs and employers are looking forward to improved results with an optimistic attitude.
~ Author Gary Sorrell. Copyright protected worldwide