Dun & Bradstreet Composite CFO Optimism Index is at a 4-year low
Mumbai, May 08, 2018: Dun & Bradstreet, the world’s leading provider of global business information, knowledge and insight conducted a pan India survey of Chief Financial Officers (CFOs) in which they were asked about their confidence in the overall financial and macro-economic conditions for Q2 2018 (Apr-Jun of the calendar year 2018), as compared to the same quarter of the previous year. The survey reveals how optimistic the CFOs are with respect to the overall financial health of their respective companies, the business risk environment and the macroeconomic scenario in the country.
  • The Composite CFO Optimism Index declined by 17.8%, on a q-o-q basis, to 96.2 during Q2 2018 – lowest in 4 years
  • Optimism levels dipped both for financial performance of the company and macroeconomic scenario.
  • 61% of CFOs have indicated domestic macro-economic scenario to be favourable in Q2 2018, barring Q1 2017, it is the lowest since Q3 2014.
  • Optimism levels for financial performance of the company is the lowest in 17 quarters.
  • Optimism level amongst CFOs in the services sector is the lowest in 17 quarters
  • 31% of CFOs expect level of financial risks on company’s balance sheet to increase, highest in 17 quarters
  • 35% of CFOs indicated need for raising long term funds - highest in 3 years
  • 26% of CFOs in the industrial sector have indicated need for raising short term funds - lowest since Q2 2012
  • Only 36% of CFOs expect availability of funds in the market to increase - lowest in four-and-a-half years
  • 25% of CFOs expect cost of raising funds to increase - highest in 4 years
  • 47% of CFOs have indicated an increase in close monitoring of strategic accounts in the next six months, highest since Q2 2017
  • Since Q2 2017, CFOs have stated that Reducing cost has been their top priority and Dividend declaration as their least priority

Dun & Bradstreet’s CFO Optimism Index

Measuring CFO Optimism Level

Dun & Bradstreet is pleased to bring out the D&B CFO Optimism Index for India. In an increasingly globalised and competitive business environment, it becomes extremely important to gauge the financial perspective of the corporate and how they perceive the overall macroeconomic scenario and the evolving risks to their business. As the CFOs are responsible for ensuring and maintaining the financial health of the company, a pan India survey would be a critical tool to enable us to understand the financial condition in the near term as perceived by the CFOs. The D&B CFO Optimism Index is arrived at on the basis of a quarterly survey of CFO expectations regarding the financial state of their company as well as overall macroeconomic scenario. Dun & Bradstreet’s CFO Optimism Index tries to estimate the optimism level of the CFOs about the performance of their companies and the overall macroeconomic scenario as well as the CFO’s short-term priorities on a quarterly basis. A pan India survey is conducted on CFOs in the industrial and services sector on a quarterly basis.