Monday September 22, 2014

BofA survey: Financial execs more pessimistic

Thirty-six percent of CFOs and other executives surveyed by Bank of America Merrill Lynch expect the economy to expand this year, down from 63 percent in the spring.

The Wall Street Journal cites a new Bank of America Merrill Lynch survey in reporting that “a growing number of CFOs and other financial executives expect the U.S. economy to contract this year, as pessimism has grown over the U.S. government’s ability deal with the country’s economic issues.” While most executives polled anticipate the economy to either grow or remain flat, such factors as the budget deficit, global unrest, stubbornly high unemployment and low consumer confidence were listed as formidable headwinds that could hinder growth. “Of the 250 randomly selected CFOs, finance directors, and other executives interviewed for the survey,” the Journal notes, “36 percent said they expect the economy to expand this year, down from 63 percent in the spring. . . . The survey also indicated that CFOs’ confidence in their own companies had dropped, with 60 percent forecasting higher revenues” versus 64 percent in the spring.

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