If U.S. companies are going to grow in 2016, they’re going to do it domestically. That is the gist of a recent survey of chief financial officers conducted by the Deliotte professional services firm.
“CFOs indicate a push toward higher investment in North American markets with little additional focus on Europe or China,” the report stated.
The survey tallied responses from 112 CFOs. Fifty-five percent described North American conditions as good, compared to 59 percent in the previous quarter.
“Only 27 percent of surveyed CFOs said improvement in North America’s economy is dependent on improvement in China’s,” the report stated. “Moreover, nearly 60 percent said China is not an important market for their company.”
Despite concerns over the stock market, federal funds rate, foreign economies and presidential election, there are reasons for executives to see resilience in the U.S. economy. In a December speech in Columbia, Wells Fargo economist Jay Bryson pointed out sectors such as construction, education and health care.
“Could the rest of the world pull us down?” Bryson asked. “For all the talk of globalization, the U.S. economy doesn’t have a whole lot of ties to the rest of the world.”
Manufacturing is more exposed to globalization trends, however. In the Deloitte survey, manufacturing CFOs said they expected to do little domestic hiring in 2016 and 89 percent said they were focused on becoming more efficient.