Chief financial officers of major U.S. corporations voiced the most pessimism over their companies’ prospects this quarter than in any other quarter during the two and a half year history of Deloitte’s CFO Signals survey
Among companies averaging more than $5 billion in annual revenue, 40 percent of CFOs report rising pessimism this quarter. And 47 percent are more pessimistic about their companies’ domestic operations.
CFOs expect year-over-year sales growth of 4.8 percent, compared to their expectation last quarter of 6.6 percent. Expectations for domestic hiring growth have slipped to 0.6 percent from 2.1 percent last quarter.
The executives are concerned about sluggish economies around the globe, election-year uncertainty in the United States, and the fiscal cliff.
“We are clearly witnessing a very tough environment for business – even for many of the largest and most successful companies in the world,” Sanford Cockrell of Deloitte said in a statement accompanying the report.
“When you take global economic conditions that are already difficult and then add in the uncertainty that comes with elections and a fiscal cliff in the U.S., it is easy to see why CFOs’ expectations would become more conservative.”
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