About 14% CFOs Expect Cost Of Raising Funds From Market To Reduce: Report
Amid the fear of a possible economic slowdown across various economies, a total of 14 per cent of chief financial officers (CFOs) expect the cost of raising funds from the market to reduce, said Dun & Bradstreet (D&B) India in a survey.
D&B India’s Composite CFO Optimism Index stated that only 27 per cent of CFOs are optimistic about the risk appetite of firms in the current scenario, which is the lowest in ten quarters.
It also mentioned optimism for the domestic macroeconomic scenario has improved significantly to 72 per cent in Q3 2023, which is the highest in ten quarters. "Optimism for the global macroeconomic scenario stands at 37 per cent in Q3 2023, which is the highest in six quarters," it stated.
Arun Singh, Global Chief Economist, Dun & Bradstreet, said, "The increase in optimism for financial performance is being driven by the expectation of higher operating margins as the producer prices are steadily moderating along with improvement in the supply chain."
Singh added that while high-interest rates continue to cause discomfort amongst CFOs, the recently articulated dovish outlook by RBI offers some respite to CFOs regarding the gradual decline in costs of raising investment and working capital as well as improved credit availability in the market.
"The decrease in global commodity prices and deflationary trends across markets globally contribute to heightened optimism towards domestic as well as global macroeconomic conditions, for the first time in five quarters," he stated.
