Strategies for uncertainty
CFO optimism has made up some of the record losses sustained in
the second quarter as the euro crisis intensified. Spirits seem to
have been lifted by the recent promise of more aggressive action
from the Federal Reserve to support growth and from the European
Central Bank (ECB) to strengthen the single currency.
Yet while central bank activism helped fuel a strong, 16% rally
in global equity markets between June and mid September CFOs take a
more cautious longer term view.
CFOs believe an unpredictable economic and financial environment
is the biggest factor constraining investment. 90% of CFOs rate the
economic uncertainties facing their business as being above normal
and 45% expect the UK's recession to run on or return within
the next two years.
