A growing expectation of a double-dip” recession is evident in a new poll of financial executives. Conducted quarterly by Mountain View, Calif.-based Adaptive Planning and Palo Alto-based Business Performance Management Forum, the poll found more than half of financial executives predicting another downturn, and most expecting jobs recovery to lag into 2011. Specifically, the Q1 2010 Business Volatility and Variables Survey revealed that 51% predict a “W-shaped” recovery, up from 46% a quarter ago.
Moreover, 72% expect that a recovery will not occur until the second half of 2010 or later and 67% expect that a meaningful improvement in jobs will not occur until 2011 or beyond.
However, while less than sanguine about the economy at large, respondents have brighter expectations for their companies. Indeed, more than half (55%) expect revenue growth for their company over the next six months, while 25% expect to add jobs—more than the 17% that project jobs growth from the broader economy in the next two quarters.
“Taken together, these results illustrate an extremely mixed outlook for both the economy and corporate performance over the foreseeable future,” said William Soward, CEO of Adaptive Planning said in a statement. “While there are downside risks from a possible double-dip recession, there is also the potential for upside surprises, given the fact that the company-specific outlook is brighter than that for the overall economy. In either case, the successful companies will be those that are able to plan for multiple scenarios, closely monitor their actual performance, and respond quickly to changes in their business and operating environments.”
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