Optimism for financial performance reaches 99 in Q4 2023, rises to 2-year high mark: CFO survey

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Also Read: Stock market today: Sensex, Nifty 50 end flat; realty, metals shine, pharma stocks drag The optimism for the global macro-economic scenario has diminished, with 33 per cent of respondents expecting it to decrease in Q4 2023, compared to 37 per cent in Q3 2023, according to the survey. 52 per cent of CFOs are optimistic about the requirement for short term funds in Q4 2023, highest since the inception of index in 2012. Dr.

Arun Singh, Global Chief Economist, Dun & Bradstreet said, “Despite escalating geopolitical tensions stemming from the Israel-Hamas conflict and the existing global financial strain from high interest rates and increased risk, domestic CFOs’ confidence remains steadfast. CFOs exhibit heightened optimism compared to the previous quarter, forecasting enhanced business activity and a positive financial outlook for companies.'' The survey also found that 52 per cent of CFOs are optimistic about the availability of funds in the market in Q4 2023, which is highest in 11 quarters. Also, 42 per cent of CFOs in the industrial sector expect the operating margin of the company to decrease in Q4 2023, 9 percentage points lower than Q3 2023.

‘’Businesses are swiftly adapting to the high interest rates, fostering hope for an early end to monetary tightening and a surge in consumer demand. This shift drives the need for increased working capital and credit for capital expenditures. Nonetheless, there's an anticipation of amplified financial risks linked to balance sheet volatility due to turbulence in global capital markets.