CFOs forecast rise in capital and technology spending
A rise in capital investment of up to 14% and a 12% boost to technology spend has been forecast at US corporates over the next year, according to the latest CFO Outlook Survey produced by Financial Executives International. This compares favourably with figures from the previous quarter, where CFOs predicted respective rises of 8% and 7%. The bullish outlook on capital and technology spend is in contrast to the majority of CFOs (56%) who are feeling the impact of rising producer prices from the last quarter. More than three quarters of those CFOs ? 77% - will pass on at least half or all of the increased costs to customers.
?Higher forecasts for capital and technology spending is a good sign for the economy,? comments Burton Rothberg, assistant professor of accounting at Baruch College. ?Even though CFOs are beginning to feel the pinch of higher producer prices, they seem confident that economic growth will prevail.?
Sarbanes-Oxley, as ever, remains high on the agenda with CFOs noting some positive changes as a result of the legislation. Just under a third are reporting improved controls over the documentation of systems while a fifth have invested in technology to monitor and maintain compliance.