While in some lights the economy looks healthier than ever — companies are sitting on record amounts of cash; bankruptcies are at 20-year lows — in others, it looks like a house of cards waiting to collapse. CFO optimism about the economy hit a 5-year low in September, according to CFO's quarterly survey, with one-third predicting a recession in the next year. That gloominess is driven largely by concerns about consumer demand, followed by rising labor costs and increased fuel prices. If consumer demand weakens any more, 34 percent of CFOs say they will cut back on hiring, and 29 percent will cut back on capital spending. How else might companies start battening down the hatches? CFO culls its best articles from past downturns on how to navigate through an economic storm.
(Source: CFO.com Members Newsletter, Thu, 19 Oct 2006)
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