According to the most recent Duke University/CFO Magazine Global Business Outlook survey, which asked more than 1,000 CFOs from a broad range of global public and private companies about their expectations for the economy, the economy doesn’t sound too healthy.
Optimism among chief financial officers in the United States has plummeted, with three-fourths of the CFOs saying the economy is either currently in recession or will be at some point during 2008. Nearly 90 percent of CFOs say the economy will not rebound until 2009. They expect inflation will increase to 3 percent this year.
We also had three major clothing retailers with weak reports: Talbots reported a loss on Wednesday, while American Eagle Outfitters and Men’s Wearhouse reported lower earnings. It seems to me that people are wising up a little and choosing to save more of their money by putting off new clothing purchases.
And yet another story on a crisis in the financial sector. This time its overseas: “Irish banks may need life-support as property prices crash.” There’s talk of nationalization of some banks as the property slump over there is leading to a wave of defaults.
Things still don’t look good here in the U.S. or in the rest of the world.
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