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Report: CFOs Foresee Decline of U.S. Economic Conditions in Coming Months

1600 execs interviewed for survey

A recent survey conducted by Grant Thornton has found that chief financial officers in the country show a lack of confidence in the economy’s improvement in the coming six months.

About 60 percent of over 1,600 chief financial officers in the country interviewed for the “2013 Fall CFO Survey” believe the U.S. economy will stagnate or worsen in the next few months, Grant Thornton said Tuesday.

The financial executives said certain changes must be made to legislative matters with 24 percent wanting to reevaluate sequestration and another 24 percent requiring a tax code reform.

“The declining confidence and uncertainty in the performance of our economy shouldn’t be surprising given the recent gridlock surrounding our nation’s budget and debt ceiling negotiations,” said Stephen Chipman, CEO of Grant Thornton.

“It’s time for our country’s political leaders to embrace a long-term budget solution combined with comprehensive tax and entitlement reforms in order to remove the largest obstacles to business uncertainty and position the United States for a sustained economic recovery.”

Negative industry financial prospects remain the same from the spring survey as 56 percent of the CFOs said conditions will worsen or stay the same.

However, 43 percent of the executives expect companies to employ more people in the next six months and 68 percent said average employee salary might increase in the coming year.

More Stories By Tim Watson

Tim Watson supervises all media production at Executive Mosaic, a digital media company that provides insight, information and analysis on several industries, including government contracting.

He previously produced byline coverage with the economics team at USA Today and evaluated lending proposals for the Overseas Private Investment Corporation.

Tim was born and raised in Washington, DC and holds a bachelor’s degree in Business-Journalism from Washington and Lee University and a certificate in budgeting and finance from Georgetown University's School of Continuing Professional Education.