Are You Onboard the Economic Optimism Train?
Everyone has been affected by the state of the U.S. economy and has seen how slow job growth, lack of consumer spending and a decrease in profits has derailed some businesses. The state of our economy is not projected to last forever which has recently led to some seeing a light at the end of the tunnel when it comes to the defunct economy.
Should you be optimistic?
According to the CFO Outlook Survey, a substantial number of chief financial officers say yes. The survey, distributed by Zicklin School of Business (Baruch College) in conjunction with Financial Executives International (FEI), noticed a significant increase in CFO confidence when it came to talk of hiring new employees in 2011. According to those who participated in the survey, when it comes to business, their optimism levels are high.
- 64% – Number of CFO’s projecting to hire supplementary employees within the following six months
- Ford Motor – Plans to hire an estimated 7000 workers in a two year time period
- Lowe’s – Confirmed they will be hiring between 8000 to 10,000 employees slated for weekend sales associate positions
What’s to be Expected
A percentage of CFO’s are still cautiously optimistic when it comes to their own spending tactics. A majority of survey participants felt that growth in revenue may still be a challenge in the beginning of 2011 but they felt an improvement was on the way.
- 10.5% – Projected growth in revenue
- 16.6% – Projected growth in earnings
- 47% – Number of CFO’s continuing to spend cautiously
- 30% – Number of CFO’s spending without fear
- 69% – Number of CFO’s investing in technology to increase capital
Areas Showing Highest Optimism Rates
Overall, full-time work in the United States is expected to increase by 2% in 2011. Employment optimism in the U.S. has fueled nations from around the world to expect a boost in their own economic outlooks for 2011. Which sectors are expected to do the most hiring? The technology and the service/consulting industries, especially research and development and advertising sectors, should see a spike in hiring as well as investments.
Why are CFO’s focusing on these industry sectors? These areas are consistently expressing signs of economic improvement and continue to rebound from the nation’s economic crisis. In addition, both growth and return investments involving the technology and service/consulting industries are predicted to steadily improve. These sectors have established roots in the United States and do not heavily rely on international sales and foreign suppliers as other business sectors do. Local businesses are more likely to benefit from such measures than from U.S. companies that deal mostly in foreign markets.
Optimism Continues to Spread as 2011 Progresses
As 2011 pushes onward and upward, CFO optimism continues to spread, thanks to signs that America is about to bounce back from the worst economic catastrophe since the Great Depression.
~ Written by Gary Sorrell, Sorrell Associates, LLC.
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