97% of CFOs expect economic slowdown in 2020

97% of CFOs expect economic slowdown in 2020

PanARMENIAN.Net - Chief financial officers at big companies entered 2020 on a cautious note, with almost all anticipating an economic slowdown against the backdrop of an overvalued stock market, according to a survey released Thursday, January 9, CNBC reports.

The Deloitte CFO Signals Survey showed that while the corporate leaders see the economy as “good,” they anticipate that before the year is over, conditions will slow.

They see consumer and business spending slowing, and 82% anticipate taking more defensive actions, like reducing discretionary spending and headcount, as a way to stave off the looming headwinds.

The slowdown is likely to be particularly acute in Europe and China. While 69% of respondents see conditions in North America as good, the number is just 7% in Europe and 18% in China, the latter a three-year low as the country’s shift to a more consumer-focused economy and its trade battle with the U.S. both conspiring to hold back growth.

“North America is clearly the place where companies are continuing to increase their investment focus,” said Sandy Cockrell, Deloitte Global CFO program leader. “There’s still a high level of caution.”

Deloitte surveyed 147 CFOs from U.S., Canada and Mexico, most from companies that have more than $3 billion in annual revenue.

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