Tuesday, October 11, 2005

cfo economy concern before Katrina

Even before Katrina hit the Gulf Coast...chief financial officers were concerned about the economy.
CFO's were less optimistic about economic prospects in the U.S. than they have been in four years. According to the Duke University/CFO Business Outlook Survey conducted in August, only 29 percent of respondents said they were more optimistic about the economy than the previous quarter. That's down from 40 percent in July.

Katrina is likely to further weaken the economy. It could cut 400,000 jobs and stunt growth by a full percentage point. Higher fuel prices also have a negative effect. CFO's had already ranked higher fuel prices as their biggest economic concern. The housing market was also high on the list in which a bubble could be ready to pop.







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