The report provides an update on the economic landscape since the last review, highlighting that inflation has begun to ease. It notes that the central bank in Canada and some of its major trading partners have started reducing policy restraint by cutting policy rates. However, the report underscores that the future remains uncertain due to growing concerns among consumers and companies about global conflicts, trade frictions, and the potential policy impacts of the US election outcome. Additionally, the report points to increased financial market volatility in August, which contributed to the uncertain economic outlook. The report aims to address questions about the near-term economic growth and the influence of consumer confidence as we approach 2025.
The Deloitte North American CFO Signals survey reveals that CFOs are cautiously approaching the upcoming U.S. election, with only 3% believing the outcome will be inconsequential for their organizations. Key findings include that 58% of CFOs consider the election results to be highly or very consequential, 33% prioritize workforce issues for federal attention, and only 14% rate the current North American economy as good, with 19% expecting improvement in a year. Additionally, only 12% think it's an excellent time to take on more risk, down from 26% in 2Q24. Inflation is the top external risk, while technology transformation is the leading internal risk.
As alternative lending goes mainstream, banks may need to revamp strategies to meet corporate borrower needs. This report from the United States examines a range of strategies banks are currently adopting. Based on information from publicly available sources, such as regulatory filings and public statements, Deloitte studied the initiatives the 50 largest banks based on assets in the United States, including foreign banking organizations and intermediate holding companies, are taking to respond to the increased competition for corporate lending revenue.
This report covers the CFO Signals™ 2Q 2024 survey, highlighting a cautious outlook among CFOs amid economic uncertainties. Most view the economy as the top external risk, while internal risks are dominated by challenges in adopting Generative AI and talent management. The survey indicates a reluctance to undertake more significant risks, with unfavourable views toward debt and equity financing. CFOs are divided on U.S. equity market valuations and their companies' financial prospects, reflecting a cautious and balanced outlook for the future.
The Canadian economy is proving its resilience, surpassing year-end expectations with solid labour market performance and sustained population growth. Many signs point to a recovery from the current economic slump in the latter half of the year. Despite this good news, Canada is still in the woods. Challenges are weighing on the economy, with high debt levels, rising mortgage rates (and mortgage delinquencies), business insolvencies, and a stalling productivity that’s keeping growth low.
The Q1 2024 CFO Signal indicates heightened economic optimism among CFOs, particularly for North America. About 54% of CFOs anticipate improved conditions in a year, up from 37% last quarter. Net optimism for their companies' financial prospects also rose significantly. Despite these optimistic projections, CFOs remain cognizant of potential external threats, such as geopolitical tensions, macroeconomic fluctuations, the evolving political landscape, and interest rates. Internal risks, including talent retention, operational efficiency, cost and capital management, innovation, growth, and technological advancements, also remain areas of concern.
In Canada, it is becoming more evident that the issue of social cohesion affects all manner of organizations. If any country, community or company is unable to cohere its various stakeholders, it will struggle to move forward. This research was conducted with the goal of identifying a critical but less-than-obvious piece of the social cohesion puzzle, to help organizations and leaders better galvanize their stakeholders in common purpose.
In this quarter’s survey CFOs diminished their 12-month outlook for economic conditions falling in most regions tracked by CFO Signals. They also indicated lower year-over-year (YOY) growth expectations for earnings, revenue, and other key metrics. Little wonder their 2024 priorities are financial performance, growth—both organic and inorganic—and cost management.
Our third-quarter 2023 North American CFO Signals survey reveals a fair degree of positive momentum—in CFOs’ assessments of North America’s economy, their level of optimism for their own companies’ financial prospects, and their interest in the potential uses and benefits of Generative Artificial Intelligence (GenAI).
In our most recent September quarterly economic outlook, we discuss one of the most surprising occurrences over the past year: our country's resilient economic growth in the face of aggressive monetary tightening. In the second quarter of this year, we saw some impact as real gross domestic product (GDP) fell by 0.2 per cent. Over the near term, we expect the economy to continue to struggle in the face of high household debt, soaring interest payments, and stubbornly persistent inflation. Growth is forecast to resume at the beginning of next year as the fear of rising interest rates fades.
In this year’s report, Deloitte advises leaders on how they may be able to establish more efficient, sustainable business through proactive property portfolio structuring and risk mitigation, value creation through green and decarbonization initiatives and tax incentives, and by transforming operations and technology.
This report talks about how the insurance industry is shifting to a more proactive and customer-centric approach. This will require new technologies and a cultural change away from siloed interactions. The industry is also becoming a more active advocate for sustainability.
