While some of the nation's top financial decision makers recognize that there are global uncertainties, most believe the U.S. economy, as well as their outlook for their businesses, is improving, a new CNBC survey shows.
CNBC's Global CFO Council survey taps into the insights of 25 CFOs from a broad swath of the economy.
More than half of the CFOs believe the U.S. economy is "modestly improving," while most others feel the economy is "stable."
Editor's Note: 'It’s Curtains for the US' — Hear Unapologetic Warning from Prophetic Economist.
Most of the CFOs are optimistic about the outlook for their companies. Approximately 75 percent believe their company's revenues will increase during the latter half of the year. This falls in line with expectations reported in Bank of America Merrill Lynch's 2013 CFO outlook, which revealed the majority of CFOs were looking for year-over-year revenue increases.
Furthermore, half of the CFOs in the CNBC survey foresee their margins improving before 2014. And over 80 percent said they expect their capital expenditures (capex) to increase by at least 7 percent year-over-year in 2014.
While only about a third of the CFOs expect slight increases in hiring in the next quarter, 68 percent expect to implement a slight increase in total compensation for 2014 and none plan to decrease compensation. In addition, 56 percent do not expect to change their hiring plans in the next quarter.
Contrary to the markets, CFOs are not overly concerned about how changes in Federal Reserve policies will affect their businesses. But, then again, CFOs are not expecting the quick action many have been worried about.
More than 80 percent of the CFOs who participated in the survey expect the Fed to maintain its current policy at the next Federal Open Market Committee meeting. And, the majority doesn't believe the Fed will taper until the first quarter of 2014.
A new Standard & Poor's report seems to confirm the CFOs positive outlook for investment spending.
On a global basis, S&P expects capex to contract by 2 percent in real terms this year, and initial forecasts for 2014 show capex falling by 5 percent year-on-year, CNBC reports.
But on a regional basis, North America is one region S&P expects to increase its share of global corporate capex. Spending is expected to rise from a low of 24 percent in 2009 to 36 percent in 2014.
Editor's Note: 'It’s Curtains for the US' — Hear Unapologetic Warning from Prophetic Economist.
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