What’s Ahead? Learning From The CFO Survey

Tom Barkin

Speech from Federal Reserve Bank of Richmond

Abstract: Firms are currently navigating extraordinary uncertainty. The decisions they make about hiring, spending and investment will have implications for GDP growth, employment and inflation. Business sentiment surveys like The CFO Survey help us understand those decisions. The latest survey shows that CFOs are feeling slightly more optimistic than they were last quarter, although they remain concerned about demand and revenue. Firms also remain cautious about investing. The survey also suggests that employment will lag spending. Many firms have streamlined their operations in response to the pandemic, and others report that they are concerned about the “availability and quality of labor” despite high unemployment. CFOs also raised their expectations for wage and price increases in 2021, potentially due to supply chain challenges. If demand were to resurge, we could see pressure on near-term pricing.

Keywords: economic growth; production and investment (search for similar items in EconPapers)
Date: 2020-10-15
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