January 30, 2002—PricewaterhouseCoopers’ has published the results from its “Management Barometer,” a quarterly survey of top executives in large, multinational businesses spanning technology (including information, communications, and entertainment); financial services; and consumer and industrial products and services.
Among the 171 CFOs and managing directors who completed the survey, optimism about prospects for the U.S. economy rebounded during the fourth quarter of 2001, with 47 percent saying they are optimistic, up from 23 percent in the previous quarter. Seventeen percent said they are pessimistic, compared to 35 percent in the third quarter of 2001. The remaining 36 percent are uncertain.
Some of the findings include:
- For calendar 2002, they expect growth of 6.0 percent. Estimates for revenue growth at technology companies climbed to 4.9 percent.
- Weak market demand is seen as the predominant barrier to meeting revenue targets in the year ahead. It was cited by 60 percent of top executives, but down by 21 points from the third quarter of 2001. Among technology executives, 68 percent voiced this concern, down 16 points.
Marketing and sales promotion has the largest increase in companies expecting higher investment—up 11 points, quarter-to-quarter, to 32 percent; matched by advertising, also up 11 points, to 26 percent; and geographic expansion, up 10 points, to 27 percent. Increased investment is also expected for business acquisitions, up six points, to 40 percent; and new product introductions, up four points, to 42 percent.
The number expecting increased IT spending jumped four points, to 40 percent. And those planning higher R&D spending held steady at 21 percent.
“Management Barometer” companies’ recovery plans include little workforce expansion. Over the next 12 months only 31 percent expect a net addition of employees; 32 percent plan a net reduction of staff; and 37 percent say their workforce will stay about the same.
PricewaterhouseCoopers’ “Management Barometer” is developed and compiled with assistance from the opinion and economic research firm of BSI Global Research, Inc. For more information about this survey, contact Pete Collins, survey director and publisher, at 646/394-4496 or e-mail.
