US financial directors expect recession within two years

US financial directors expect recession early next year. Their mood only further aggravates the already poor sentiment observed in the business sector and consumers. These expectations are due to the commercial war and the volatility of the financial markets.

49% of respondents see an economic turnaround by the end of 2019. 82% expect the recession to start at the end of 2020. The poll was conducted by Duke University (CFO Global Business Outlook survey). The US Optimism Index has fallen to 66.4 points, the lowest since the third quarter of 2017.

Concerns about recession suggest that business is more pessimistic than economists. In addition to expectations, the Federal Reserve Bank of Philadelphia's study of various analysts shows that their expectations are for the US economy to shrink by 23%. Companies have already planned their investment and employment plans for the next 12 months, and since June they have become more conservative in their intentions.

The National Federation of Independent Business has also conducted a survey of small businesses that also expect a deterioration in the economy over the next six months.

Source: Bloomberg Finance L.P.

Photo: Unsplash

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