Despite concerns about interest rates and the upcoming presidential election, respondents to Deloitte's 4Q15 CFO Signals survey expect that "North America (and the U.S. in particular) can continue to shoulder the burden of economic growth again in 2016."
The survey's net optimism index registered its 12th consecutive positive reading, though the fourth quarter's +10.7 reading is its lowest level in three years. And the weakest sentiment is in manufacturing and retail/wholesale.
But at the same time, CFOs in the retail/wholesale space have some of the highest expectations for 2016, driving an outlook rebound, according to the survey. As a result, the decline in current sentiment may be a result of high expectations in prior surveys rather than pessimism about what's to come.
Revenue growth expectations for the next 12 months rose to 5.9 percent from last quarter's 4.4 percent for all respondents; retail/wholesale respondents expect growth of more than 8.5 percent for that period.
With such high expectations, where is growth expected to come from? "Just over half of CFOs say they are biased toward revenue growth, while only 30 percent claim a focus on cost reduction," the survey notes.
Respondents overwhelmingly said the focus will be on growing existing business with current customers and in current geographies. Retail/wholesale respondents are also looking to expand externally. More than half (56 percent) listed new markets as one of their top three priorities.
