Economy

CFOs Downbeat As US Economy Begins COVID-19 Reopening

economy

Among other efforts to stem the economic carnage, the U.S. government has passed a series of stimulus bills responding to the COVID-19 crisis, including the $2.2 trillion CARES Act, which included the Paycheck Protection Program, geared to small and medium-size businesses (SMBs).

So how does the outlook for the economy look? According to chief financial officers (CFOs) at large corporations, there’s trouble on the horizon.

Almost half of the CFOs responding a quarterly survey by CNBC said they see the pandemic having a “negative” impact on their companies this year. More ominously, another 39 percent see “very negative” impact.

The quarterly survey shows growing certainty among CFOs that the pandemic will hurt their companies — while the outlook for the global economy grows more negative. CNBC said its Global CFO Council includes some of the largest public and private companies in the world, with a total market value of more than $5 trillion. Of the council's 130 members, 41 responded to the survey, according to the report.

The companies, which represent numerous economic sectors, see a drop in demand for their products. And on average, the CFOs surveyed said the gross domestic product (GDP) outlook for every region of the world, including the U.S., is “declining.” They rated Brazil and Latin America even worse: “strongly declining.”

Part of the situation, as the U.S. economy reopens, is an unknown: How will consumers behave?

As reported by PYMNTS, there’s lots of concern over how consumers will behave as state’s reopen their economies. “What’s 100 percent for certain is that if we stay in our rabbit holes, we’re going to have irreparable damage to our economy,” said Ingo Money CEO Drew Edwards.

Dan Speight, CEO at Georgia-based Planters First Bancorp, said his bank is getting set to reopen its lobby. He said employees “have all the personal protective equipment (PPE) ready to go and are never going to be more ready than they are right now.

“It’ll be interesting to see how [many] people show up and if they really want to come in,” he added.

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NEW PYMNTS STUDY: ACCELERATING THE REAL-TIME PAYMENTS DEMAND CURVE – NOVEMBER 2020

About: Accelerating The Real-Time Payments Demand Curve:What Banks Need To Know About What Consumers Want And Need, PYMNTS  examines consumers’ understanding of real-time payments and the methods they use for different types of payments. The report explores consumers’ interest in real-time payments and their willingness to switch to financial institutions that offer such capabilities.

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