Holding a management position requires a differentiated view of the particularities of the economy and the sector in which one operates and applying knowledge in a strategic and sustainable manner. According to the Consumer Confidence Index , an indicator developed by Saint Paul Business School in partnership with the Institute of Financial Executives, IBEF-SP, confidence in the economy is beginning to change and could yield good results in 2017.
HIGHLIGHTS – iCFO – 2nd quarter
1. The iCFO for the second quarter of 2016 was 93 points , on a scale ranging from 20 to 180, with 100 representing neutrality regarding CFOs' confidence. Thus, it can be concluded that CFOs are slightly pessimistic, approaching neutrality, regarding the outlook for the next 12 months, an increase of 5.7 points compared to the previous quarter (87.4 points) .
2. Of the three components of the iCFO (macroeconomics, sector of activity, company in which it operates), only the iCFO M (macroeconomics) showed a significant change in the period: there was a significant venezuela whatsapp data decrease in the level of pessimism of respondents in relation to the macroeconomic outlook for the next 12 months, falling from 43.8 to 75.3 points.
3. Despite the improvement in CFOs' confidence regarding the macroeconomy, they are still at a stage of considerable concern regarding factors related to this environment (Demand from the Brazilian domestic market, political environment and government interventions in different sectors of the economy), confirming that this is still a pessimistic moment in relation to the national environment.
4. The average expectations of CFOs regarding macroeconomic variables for the next 12 months showed improvements: inflation of 8.2% (compared to 8.9%), exchange rate at R$3.60 (compared to R$4.40), Selic at 13.3% (compared to 13.7%) and a 2.3% drop in GDP (compared to a 3.0% drop).
5. There has been a significant improvement in the CFOs' prospects for reducing the number of employees/outsourced workers, although there is still pessimism , with 39% of respondents indicating an intention to reduce the number of employees (compared to 48% in the previous survey).
6. It can be seen that there is an optimistic trend in CFOs' expectations regarding the evolution of the cost of debt for the next 12 months : the level of pessimism (related to expectations of an increase in cost) fell from 56.9% to 35.5%, while the level of optimism (related to the fall in cost) rose from 7.7% to 27.4%.
7. Regarding investment financing sources, cash resources and the use of equity account for 62.4% of the frequencies , which is an important indicator of conservatism in decisions regarding the financing structure of projects for the coming periods, also consistent with the uncertainty regarding the future costs of debt and consistent with what was observed in the previous edition.
8. Regarding revenue expectations, pessimism was observed in the respondents' outlook , with 54% of respondents being pessimistic and 25% optimistic regarding the sector's performance. However, there was a higher level of optimism regarding the revenues of the company in which the respondents work when compared to the sector's performance , since the level of optimism rose to 47%, to the detriment of pessimism, which fell to 31%. In relation to the previous survey, it was found that the respondents were more conservative in their outlook, having presented less optimistic results for their sector and company .