6:38 am May 18, 2011, by Henry Unger
Hopefully, the world’s CFOs know what they’re talking about.
Three-quarters of the senior finance executives surveyed around the globe expect economic expansion over the next 12 months, according to a new American Express survey.
It was the highest percentage from the 665 execs polled since Spring 2008, said a news release detailing results of the American Express/CFO Research Global Business & Spending Monitor. One-third of those surveyed were from the U.S.
With many companies sitting on large cash surpluses, deal-making tops the list when it comes to their plans for deploying capital, the survey found. Sixty-nine percent are focused on aggressive M&A activity over the next year, the news release said.
Other key findings include:
– Over half (54 percent) see economic growth accelerating in the second or third quarter of 2011. Seventy-one percent predict growth by year-end.
– Around the world, execs who say their companies plan to “spend more” on labor/head count in the next year outnumber those who say they plan to “spend less” on labor by nearly two to one (32 percent versus 17 percent).
– Lessons learned in the downturn will lead to a more cautious approach. For example, 76 percent will conduct more rigorous due diligence of M&A opportunities.
– Finance executives will spend more on market access and nearly half (48 percent) plan to increase the sales workforce.
– Almost half (46 percent) plan to invest more in customer service over the next 12 months.
– Two in five (41 percent) will spend more on travel this year – up from just 26% a year ago.
- Henry Unger, The Biz Beat
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