More CFOs in Asia are optimistic about the economy of the country in which they are based, according to the latest quarterly Duke University/CFO Magazine Global Business Outlook Survey.
The survey says 74.4% of the 130 CFOs polled are more optimistic about their economy, a slight improvement from last quarter's 70.2%.
Due to wage increases among manufacturing employees, more than one-third of Asian CFOs expect manufacturing sector growth to fall by a moderate or large amount.
The survey also reveals that nearly half of Asian CFOs believe stricter enforcement of their country's immigration plicies would have a negative effect on the economic growth of their country. In comparison, 35% of U.S. firms feel this way.
Top concerns focus on intense price pressure, global financial market instability, weak consumer demand and concern about government policies.
Attracting and retaining qualified employees is a major concern for Asian comanies, especially in China. Other top company-specific concerns include achieving profit margins and maintaining employee morale and productivity.
Asian CFOs expect capital spending to increase by about 9%, and say earnings will climb by more than 13%.
About 70% of Asian companies expect to unleash cash reserves over the next year. Among these firms, primary uses of the cash include capital spending, research and development, and increasing employee pay and benefits.
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