By Dr. Arun Singh,
Chief Economist
Dun & Bradstreet India
21-Aug-19

CFO Optimism Index

Dun & Bradstreet Composite CFO Optimism Index remained almost unchanged on a y-o-y basis

Optimism for macroeconomic scenario declined by 12.1% (y-o-y)

Mumbai, August 20, 2019: 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 Q3 2019 (Jul-Sep of the calendar year 2019), 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 survey revealed interesting facts about CFOs’ perspective on the overall business climate in the country:

  • The Composite CFO Optimism Index remained unchanged, increasing only by 0.6%, on a y-o-y basis, to 106.0 during Q3 2019
  • Optimism levels for financial performance of the company increased by 10.5% (y-o-y), while optimism for macroeconomic scenario declined by 12.1% (y-o-y)
  • Optimism level amongst CFOs in the industrial sector increased by 11.3% (y-o-y), while it declined amongst CFOs in the services sector by 3.8% (y-o-y) in Q3 2019
  • 44% of CFOs have indicated domestic macro-economic scenario to be favourable, lowest in 23 quarters
  • 37% of CFOs in the services sector have indicated global macroeconomic scenario to be favourable in Q3 2019 – lowest in 12 quarters
  • 15% of CFOs expect an increase in availability of funds in the market - lowest since Q2 2012
  • 35% of CFOs have indicated overall scenario for mergers & acquisitions to be favourable during Q3 2019 – lowest in 22 quarters
  • 37% of CFOs expect a decrease in the level of financial risks on their company’s balance sheet - highest since Q2 2012
  • 11% of CFOs in the industrial sector have stated dividend declaration to be their priority in the next six months, highest in five quarters
  • 29% of CFOs have stated hedging to be their risk management tool in the next six months, highest in three quarters

 

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