CFOs dial back economic expectations: Deloitte
Latest survey finds several CFOs have downgraded their outlook for 2022
Deloitte's latest quarterly survey of Fortune 500 chief financial officers shows a less optimistic outlook for the U.S. economy in 2022 than just a few months ago, citing concerns over inflation across the board.
The consulting firm's fourth quarter poll, which included 130 CFOs, found that less than half, 45%, expect North America's economy to fare better next year – down from 54% who believed in Q3 that things would be rosier a year from now.
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"While our CFO Signals survey found CFOs expecting consumer spending and business investment to grow, they also expect increases – often substantial – in various cost inputs, including talent/labor, supply materials and inflation," Deloitte's national managing partner of its global and U.S. chief financial officer program, Steve Gallucci, told FOX Business in a statement.
Gallucci added, "In addition, 76% of CFOs indicated their organizations will raise prices for a substantial portion of their products/services to offset inflation."
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Financial executives overwhelmingly told Deloitte they have raised their expectations for capital spending year-over-year along with domestic wage and salary expenditures, with 97% of respondents saying they anticipate "their investments in talent and labor to substantially increase in 2022," the company's analysis says.
At the same time, the CFOs largely responded that the North American economy is in a decent spot at present, with 72% of them telling Deloitte it was "good," slightly down from the 78% who said the same in Q3.
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But the survey found a "gloomier" outlook for economies across the board for 2022.
"CFOs appeared gloomier – albeit to varying degrees – about the economies of North America, Europe, China, Asia excluding China, and South America," the analysis reads.