CFOs Plan Dismal Hiring in Year Ahead: Cockrell

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Sept. 17 (Bloomberg) -- Sandy Cockrell, national managing partner of CFO program at Deloitte, offers results of a Deloitte survey of corporate CFOs on hiring plans and optimism about the U.S. economy. He speaks on Bloomberg Television's "Bloomberg Surveillance."

He has a new survey.

The less optimistic year ahead for corporations.

Sandy, we want to talk to about the outlook here.

I just want to know what cfos say about what it means for hiring.

Do they plan to hire?

Yes, but it is pretty dismal.

They are expecting about a 1.23% lift.

That is up from the survey average of the last 14 quarters of about 1.6 and 1.7%. but it is still not what people are looking for.

How accurate are your surveys echo.

-- how accurate are your surveys?

. in terms of optimism and pessimism this quarter, what we are expecting to see is 42% of the cf oh's -- of the cfos.

We have got about 18% of what we call optimism index.

This is a first time in the history of the survey that we have had three consecutive quarters where we have had a net optimism index.

That is actually good news.

And we feel pretty good about it.

Where is he caution coming from?

You come from chapel hill.

You actually speak to business people about what they do and what they wish to do, where is the wish to do right now?

Why the gloom?

There is no question about it.

The big issue is the slowdown in your three regional economies around the world.

Waiting for that to come back and then secondly what will governments do to try to correct that.

So it is not the generation of a constructive net present value, project by project.

It is not a microanalysis.

I think cfos today are much more strategists and think about the longer-term.

It is not as discreet as looking product type product am a company by company, issue by issue.

They are really looking at the longer-term's. one of the longer-term issues is the cost of healthcare, certainly in the united states.

What other certain -- one other survey says that most cfos count medical benefits as their primary concern.

Is unclear.

They really don't know.

Until we get some clarity about what it means, there's no question that even at deloitte, we are very conscious about what it will mean to our healthcare.

Only negative so far.

I think caution is the more proper word.

This is fascinating, just finished john hay one volume which goes up to 1895. in 2013. doom and gloom we can't grow anymore.

John taft with us with rbc capital markets.

You live this every day.

Are we just at a point where we can't figure.

Very interesting, because when we look at some of the metrics with all the sales, revenue growth, catholics and hiring, and we look at sales where they are hiring a five percent year-over-year sales growth, earnings growth is only eight percent.

That is a survey low.

The interesting thing we have been talking about is we have been anticipating that delta between sales growth and earning growth is beginning to tighten.

Our view is that many companies have taken as many costs as they can out of their infrastructure and.

Until we see economies improve it will be tough to grow the bottom and.

All right, from what is keeping cfos up at night to what is keeping you up at night.

This text has been automatically generated. It may not be 100% accurate.


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