Most senior finance executives at U.S. businesses believe theUnited States will be in an economic recession by the end of 2020,and 76 percent predict a recession by mid-2021, according tofourth-quarter results from the Duke University/CFOGlobal Business Outlook.
|But, even with a recession on the horizon, U.S. CFOs lead theworld in terms of their optimism about the general businessenvironment.
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At the company level, they say their organizations are takingsteps to mitigate the effects of a recession by increasing theircash holdings. "Hoarding cash and reducing debt are the mostobvious tactics to dull the blow of a recession," says CampbellHarvey, professor at Duke University's Fuqua School ofBusiness.
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See also:
- How Corporate Treasuries Are Seizing theMoment
- Recession on the Horizon?
- And the on-demand webcast: How Corporate Cash Management Is Evolving
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Globally, U.S.-based firms have the highest degree of optimismabout their own company. Capital spending is expected to rise 4.7percent, and wages are anticipated to grow 4.4 percent next year,the largest increases since the Q1/2019 survey.
|However, economic uncertainty remains a major concern among CFOsaround the world.
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The Duke University/CFO Global Business Outlook survey has beenconducted for 95 consecutive quarters. The survey period endedDecember 6 and generated responses from more than 800 CFOs,including nearly 500 in North America, 87 from Asia, 87 fromEurope, 139 from Latin America, and 40 from Africa.
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