CFO Optimism Index at all-time low for Oct-Dec quarter: D&B

The boldness degree of chief monetary officers over the general monetary and macro-economic circumstances within the nation reached an all-time low for the October-December quarter, says a report.

In keeping with the Dun and Bradstreet Composite Index report primarily based on the survey of over 350 respondents, the arrogance in monetary and macro-economic circumstances has declined.

The Dun & Bradstreet Composite Index confirmed a decline of 8.four per cent on a year-on-year foundation to 98.1 throughout This fall 2020, bringing the Index to a file low.

The index has, nonetheless, registered a rise of 32.1 per cent on a quarter-on-quarter foundation and the chance notion nonetheless stays excessive amongst respondents.

As per the report, the tempo of contraction in GDP has slowed down significantly throughout Q2 FY21. “Financial actions are firming up. The GDP is predicted to register a modest constructive progress in Q3 FY21 or This fall 2020,” the report mentioned.

The survey additional famous that the share of respondents who’ve seen a rise of their working margin/ profitability throughout This fall 2020 has been greater than the pre-COVID-19 state of affairs in This fall 2019.

“However, danger will not be abated, and danger notion stays excessive amongst respondents. Solely 18 per cent of CFOs surveyed count on a rise within the danger urge for food within the present state of affairs and that is the bottom studying for the reason that index was instituted in Q2 2012,” mentioned Arun Singh, World Chief Economist, Dun & Bradstreet.

Companies are nonetheless foreseeing monetary danger on their stability sheet and this may be attributed to varied elements together with excessive inflationary pressures and provide facet dangers, he mentioned.

“Consequently, CFOs are anticipated to deal with managing their money flows and undertake an efficient restoration system. Our survey reveals that for 58 per cent of CFO respondents, money circulation administration can be the topmost precedence and 63 per cent indicated that they may use an efficient restoration system as the chance administration instrument through the subsequent six months,” Singh mentioned.

(Solely the headline and movie of this report might have been reworked by the Enterprise Normal workers; the remainder of the content material is auto-generated from a syndicated feed.)

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