Nearly 50% of CFOs surveyed expect US economy to be hit by recession this year – Economics Bitcoin News
Financial services firm Deloitte conducted a survey of Chief Financial Officers (CFOs) and found that nearly 50% of respondents expect the US economy to be in recession this year. In addition, 39% expect the North American economy to be in a period of stagflation by the end of the year.
CFOs on recession and US economy
Deloitte, one of the Big Four accounting firms, released the results of its CFO Signals Survey for the third quarter earlier this week. The survey, conducted August 1-15, included 112 Chief Financial Officers (CFOs) from the United States, Canada and Mexico. Deloitte said they represent diversified large companies, noting that 84% of respondents reported revenue greater than $1 billion and more than a quarter came from companies with annual revenue greater than $10 billion.
According to Deloitte:
46 percent of the CFOs surveyed expect the North American economy to be in recession by the turn of the year.
The financial services firm explained that CFOs take various actions to prepare for a recession, including reducing or accurately managing operating expenses, controlling headcount, limiting hiring and increasing productivity.
Additionally, a number of CFOs said they evaluate their customers, services and products to identify opportunities to recession-proof their organizations. Deloitte also found:
Just over a third of CFOs (39%) said they expect the North American economy to enter a period of stagflation through 2023.
“Another 15% expressed a more optimistic outlook, saying they expect the region’s economy to grow with low to moderate inflation through 2023,” the company said.
In terms of capital market valuation, 30% of CFOs believe US stocks were overvalued in this quarter’s survey. “47% said US stocks are neither overvalued nor undervalued, while 24% said they were undervalued,” Deloitte noted.
Many people are concerned that the Federal Reserve’s dovish stance will push the US economy into recession following Fed Chair Jerome Powell’s speech in Jackson Hole, Wyoming. Among them is US Senator Elizabeth Warren (D-MA), who said, “I am very concerned that the Fed is going to push this economy into recession.”
An independent poll released last week found that 72% of economists polled by the National Association of Business Economics expect the US economy to be in recession by the middle of next year. Almost one in five economists surveyed (19%) said the US economy was already in recession. Another survey conducted by Stifel Financial last month showed that 97% of US executives are already braced for a recession.
What do you think of this Deloitte survey and the US economy slipping into recession this year? Let us know in the comment section below.
Kevin Helms
As an Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the interface between economics and cryptography.
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