Expectations for income growth declined to 9.2% (from 9.6%), expectations for capital expenditure growth also fell slightly from 11.5 percent to 11.3 percent, and expectations for household hiring were down from 5.8% to 5.3%.
Workers expecting wage increases to offset rising inflation will be disappointed as expectations of domestic wages fell slightly to 5.1% from 5.2% in the previous quarter, a less than expected increase in cost of living.
low risk
CFOs are less likely to consider this a good time to take on more risk — 47% said so, down from 57% in the previous quarter. 85 percent of CFOs consider debt financing attractive and 37% consider equity financing attractive.
“The decline in CFOs’ one-year outlook for North American and European economies and their YOY growth expectations for earnings and capital investment are indicative of the current business environment and the challenges they are up against, including talent retention,” said Deloitte. “Geopolitical tensions, inflation, and policies and regulations that could affect their strategy,” said Steve Gallucci, national managing partner of LLP’s Global and US Chief Financial Officer Program.
