CFOs see COVID-19, novel coronavirus financial hit ahead, but optimistic about recovery, says PwC

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Coronavirus: Business and technology in a pandemic

From cancelled conferences to disrupted supply chains, not a corner of the global economy is immune to the spread of COVID-19.

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The majority of chief financial officers expect the COVID-19 pandemic to hit their businesses, cut into revenue and profit and spur a recession, according to a survey by PwC.

PwC's survey polled 50 finance leaders from the US and Mexico between March 9 and March 11. The findings are a notable marker as the novel coronavirus pandemic hits businesses, disrupts supply chains and forces remote work and telecommuting as well as office closures. PwC said it will track COVID-19 finance sentiment every two weeks.

IT spending estimates have already been cut. On the bright side, 90% of CFOs are optimistic they can return to normal business operations quickly if the pandemic stops soon. 

The high-level findings include:

• All of the finance experts say their business is experiencing some novel coronavirus impact and 54% of respondents said there is the potential for a significant impact.
• 58% of CFOs expect a decrease in revenue and/or profits.
• 80% of respondents cite a global recession as one of their top three concerns with 48% citing a decrease in consumer confidence and consumption followed by financial impact and employee productivity.
• 34% say the impact has been limited to specific regions.
• 86% of finance leaders say they are considering financial actions due to COVID-19.
• 30% are considering supply chain changes.