National survey: CFOs find credit tougher to come by, with increasing costs
Almost half think the U.S. economy will stay the same for the next six months
CHICAGO, October 6, 2008 – In a national survey of CFOs and senior comptrollers conducted by Grant Thornton LLP, the U.S. member firm of Grant Thornton International Ltd., more than half (55%) say they have seen credit costs increase. Almost two-thirds (64%) of respondents have found credit more difficult to come by than one year ago, but only 14 percent have had to return to bank credit because they couldn’t access alternative financing structures.
With regard to the overall economy, 47 percent think the condition of the U.S. economy will stay the same over the next six months. Four in ten respondents think their own company’s financial prospects will improve by March, and 17 percent expect them to get worse.
Over the next six months, 42 percent of respondents expect their company to increase prices, while 51 percent expect no change. The senior executives ranked employee benefits as their number one pricing pressure concern (55%), with energy pricing pressures selected as a close second (40%).
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Have you seen credit costs increase? |
|
|
Yes |
55% |
|
No |
45% |
|
Is credit more difficult to come by now than one year ago? |
|
|
Yes |
64% |
|
No |
36% |
|
Have you had to return to bank credit because you no longer can access alternative financing structures? |
|
|
Yes |
14% |
|
No |
86% |
|
Over the next six months, do you expect the U.S. economy to: |
|
|
Improve |
22% |
|
Remain the same |
47% |
|
Get worse |
31% |
|
Over the next six months, do you expect your company's financial prospects to: |
|
|
Improve |
40% |
|
Remain the same |
43% |
|
Get worse |
17% |
|
Over the next six months, do you expect prices or fees charged by your company to: |
|
|
Improve |
42% |
|
Remain the same |
51% |
|
Get worse |
7% |
|
About which type(s) of pricing pressure are you most concerned? (Respondents could select more than one option.) |
|
|
Employee benefits (e.g., health care, pensions) |
55% |
|
Energy |
40% |
|
Raw materials (e.g., food, metals) |
39% |
|
Insurance |
17% |
|
Other |
12% |
|
Commercial property |
5% |
|
Over the next six months, do you expect your headcount to: |
|
|
Increase |
30% |
|
Remain the same |
47% |
|
Decrease |
23% |
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About the Survey
Grant Thornton LLP conducted the national survey electronically from September 8th through September 19th, 2008 with 688 chief financial officers and senior comptrollers.
About Grant Thornton LLP
The people in the independent firms of Grant Thornton International Ltd provide personalized attention and the highest quality service to public and private clients in more than 100 countries. Grant Thornton LLP is the U.S. member firm of Grant Thornton International Ltd, one of the six global audit, tax and advisory organizations. Grant Thornton International Ltd and its member firms are not a worldwide partnership, as each member firm is a separate and distinct legal entity.
In the U.S., visit Grant Thornton LLP at www.GrantThornton.com.
