Chief financial officers (CFOs) in Asia are more optimistic about the economy and expect higher earnings over the next 12 months, as well as increased capital expenditure and merger activities, according to Duke University and CFO Magazine.
72% of CFOs in Asia are more optimistic about region’s economy, compared with 66 % in the previous quarter, according to the CFO Outlook Survey of 169 CFOs announced today.
CFOs in Asia expect earnings to grow 13% over the next 12 months, up from 9.2 % in the previous quarter, the survey said. They plan a 12.5% increase in capital spending over the same period, up from 11.5%, it said.
47% of the CFOs polled expect to increase their mergers and acquisitions over the next 12 months, compared with 44% in the pervious quarter, according to the survey, a quarterly poll on CFOs from both public and private companies.
The respondents also said they will increase cash on the balance sheet by 12%, the highest level recorded in a year, compared with 7% in the last quarter, the survey said.
Wages will climb 8.5% in the next 12 months, according to the survey. Wage inflation, a skilled labor shortage and fears that consumer demand won’t match growth plans are the concerns among the CFOs, the survey said.Those polled also said it would be three years before an economic slowdown hit China and six years for India.