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CFO Survey: Uncertainty Slows Spending Plans in the US

Uncertainty about regulatory policy and health care

costs is causing chief financial officers in the United

States to hold back investment plans. More specifically,

uncertainty about regulatory policy is putting

companies in a wait and see mode, putting expansion

in general on hold.

Almost 40 percent of CFOs indicated uncertainty is

currently higher than normal. Among those companies,

about 60 percent said that uncertainty has caused

them to delay new projects and investments.

If one multiplies those two numbers together, it means

that current uncertainty is causing nearly 1 out of

every 4 companies to delay or cancel plans. That might

be enough to significantly dampen growth.

Optimism Remains Strong

The Optimism Index fell slightly this quarter to 67 on

a 100-point scale. That’s two points lower than last

quarter but still far above the long-run average of

60. CFOs remain optimistic not only about the overall

economy but about their own firms too. Hiring plans

are stronger than one year ago and U.S. companies

expect to pay higher wages, with median wage growth

of about 3 percent over the next 12 months, even

greater in the construction and tech industries.

Top Concerns

This quarter, for the first time, the top concern

among CFOs is difficulty hiring and retaining qualified

employees. Firms are finding it harder to find qualified

employees with the skill sets they seek. There are

6

AFRICA WORLD

SURVEY OF CFO

S

ACROSS

THE WORLD

FOR THE 2ND QUARTER 2017”

IAFEI AND A GROUP OF PARTNERS AMONG WHICH DUKE UNIVERSITY AND GRENOBLE EM SURVEY CFOS ACROSS THE

WORLD. FOR THE SECOND QUARTER 2017, THE SURVEY WAS RUNNING FROM 23RD MAY TO 9TH JUNE 2017.

BY JOHN GRAHAM AND PHILIPPE DUPUY