Most corporate finance chiefs in Connecticut and the Northeast foresee an economic pickup ahead, and many of them harbor inflation concerns, a new survey shows.
The a biannual survey of Northeast region chief financial officers (CFOs) and senior comptrollers conducted by accounting-consulting firm Grant Thornton LLP found growing optimism among them about the U.S. economy.
Some 52 percent of CFOs say it will improve over the next six months (up from 30 percent six months earlier), Grant Thornton said.
However, the survey results also indicate that inflation may be in the offing, with 44 percent of respondents saying their company intends to raise prices for its goods, up from 27 percent six months earlier and 14 percent one year ago.
More than three-quarters of Northeast CFOs (78 percent, down from 83 percent six months ago) are concerned with the price of employee benefits, and more CFOs are becoming concerned about the price of energy (41 percent, up from just 20 percent six months ago) and the price of raw materials (food, metals, etc.) (36 percent, up from 25 percent six months ago).
While hiring is still tepid, 42 percent of Northeast CFOs intend to increase head count, up from 27 percent six months earlier.
Regarding the Japan disaster, 93 percent say it will impact the U.S. economy and the majority believes that Japan will not fully recover for at least one year.
Grant Thornton LLP conducted its national survey from March 22 through April 6, with 318 U.S. CFOs and senior comptrollers participating, of which 59 were from the Northeast region – Connecticut, Delaware, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont.
Â
