Mixed signals continues to dominate the economic outlook. Last week, the Federal Reserve noted that most of its districts reported "modest" or "moderate" growth through late August. On the other hand, the ISM Purchasing Managers' Index contracted for the first time in six months.
The economic roller coaster has everyone guessing what's around the next turn. And there are several reasons why company's may be hesitating to invest, according to Deloitte. In its latest CFO Insights, it outlines some of the key concerns CFOs have right now.
The concerns identified by CFOs at the firms surveyed by Deloitte are concerns for every business in today's murky economy. And while some are shorter term, others point to fundamental shifts for businesses – and opportunities to evaluate how you approach them.
Here are three of the top issues "keeping CFOs awake in 2016":
1. The U.S. election: "Every Presidential election year seems to usher in a certain level of uncertainty," the report notes. Questions from who will be appointed to the U.S. Supreme Court to the general approach to regulations are keeping this year's election at the top of everyone's minds – not just CFOs.
2. Global economic uncertainty: Brexit and the EU, China's moving economic target and instability in the Middle East all continue to have an impact on the economic outlook – in large part because none of them have a clear trajectory themselves.
While Britain's vote in June to leave the European Union "will affect the supply chain for many years to come," China's slowdown – especially in fixed asset investment – is more alarming, says Cliff Waldman, director of economic studies for the Manufacturers Alliance for Productivity and Innovation Foundation.
3. Talent: While this concern was raised in Deloitte's CFO Insights, it's far from a new concern for distributors. But it's also far from a lessening concern. At 4.9 percent, the U.S. unemployment rate generally represents "full employment" and has been since May, according to San Francisco Federal Reserve President John Williams.
For firms who were challenged to find and keep workers before that, this means there's even more competition for the cream of the crop. Attracting and retaining top workers may require some investment on your part, but it will pay off in the long run. (Read more in The New Realities of Training.)
As Deloitte notes: "One takeaway: while the current situation is demanding, it presents CFOs with an ideal opportunity to apply their broad perspective and specialized financial knowledge to help propel their organizations forward."
The top concerns of CFOs are broad based (read more of them in What's Keeping CFOs Awake in 2016?), but they're not insurmountable – and they even provide opportunities for strengthening your company.