

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
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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