GE Capital, Americas surveyed the Chief Financial Officers (CFOs) of 539 U.S. middle-market companies across seven distinct industries. The findings show their views of the U.S. economy as well as their outlook for 2010 on a variety of crucial industry and business issues, including commercial credit and financing needs.
Business Outlook and Perspective
· More than half of CFOs expect to see an expansion in the US economy within the next six months although only about 40% anticipate growth within their respective industries and 50% expect their industries to remain flat during that time period.
· Nearly half of the CFOs surveyed foresee a post-recovery reset that calls for them to permanently operate under new rules.
The most significant insights to emerge from the CFO survey were as follows:
· Most CFOs (55%) said the downturn provided opportunities for their businesses to gain share despite their somewhat downbeat view of the current US economy;
· Fifty-four percent predict their profits will rise this year
While CFOs across all seven industries have a negative view of the current state of the US economy, most expect to see improvements over the next six months.
Merger and Acquisition (M&A) Outlook
· M&A activity will increase in 2010, driven by cost efficiency goals – and encouraged by the relatively low cost of assets available in the market.
Financing Conditions and Credit Market Liquidity
· Sixty-six percent of CFOs said their need for credit in 2010 is expected to be on par with last year, and 85% expect their lending institutions to maintain or increase credit availability during their next round of financing.
Industry Snapshots
· Sixty-four percent of all CFOs said they expect their company’s revenues to increase in 2010.
· The technology & business services and metals, mining & metals fabrication industries demonstrated the most optimistic outlooks.
 To view more details including breakout by industry, click to view the PDF.
For more information contact Ned Reynolds or Jeff Wilson at GE Capital.
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